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Who is required to file ITR?


Income Tax return (ITR), the term itself explains that it is an annual return that is required to be filed in order to show the amount of income a person is earning. The return of income is submitted with the Income Tax Department of India.

There are various sources of income from which a person can earn, namely:-
1. Income from salary if you are an employee working in a company
2. Profit or Gain from business or profession if you have your own business
3. Income from house property if you have rented your property
4. Income from capital gain if you sold any of your capital assets
5. Income from other sources like receiving dividend, interest or deposits, lottery income etc.

Who is required to file an ITR?

In simple terms, a person whose total income is in excess of the basic exemption limit is required to follow the rule laid down by the income tax department to file ITR in the given time period. Adding more to it, there are some cases where the filing of returns is mandatory.

As per the latest notification No. 37/2022 dated April 21, 2022

  • If his total sales, turnover or gross receipts as the case may be, in the business exceeds Rs. 60 lakhs rupees during the previous year; or
  • If his total gross receipts in profession exceeds 10 Lakh rupees during the previous year; or
  • If the aggregate of tax deducted at source and tax collected at source during the previous years, in the case of the person, is 25,000 rupees or more; or
  • The deposit in one or more savings bank account of the person, in aggregate, is rupees 50,00,000 or more during the previous year.

Provided that in the case of an individual resident in India who is of the age of 60 years or more, at any time during the relevant previous year, the provision of clause (iii) shall have effect as if for the words “twenty-five  thousand”, the words “fifty thousand” has been substituted.

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