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As per the Income Tax Act, the following individuals must file an ITR if their total income exceeds the basic exemption limit:

 

• For Individuals Below 60 Years: Income exceeding ₹2,50,000.
• For Senior Citizens (aged 60 years or above but below 80 years): Income exceeding ₹3,00,000.
• For Super Senior Citizens (aged 80 years or above): Income exceeding ₹5,00,000.

These thresholds apply to total taxable income, which includes salary, business income, capital gains, rental income, and any other income.

Individuals who have income from foreign sources are required to file an ITR, regardless of whether their income from domestic sources exceeds the exemption limit or not. This includes income from foreign investments, foreign bank accounts, or properties abroad.

If any taxes have been deducted or paid on your behalf (like TDS on salary or interest) and you believe you are eligible for a tax refund (e.g., because your taxable income is below the taxable threshold), you are required to file an ITR to claim the refund.

If the Income Tax Department sends you a notice asking you to file your ITR, you must comply with the notice, irrespective of whether your income exceeds the basic exemption limit or not.

If you have incurred a loss in a particular financial year (e.g., capital losses or business losses) and wish to carry it forward to subsequent years for set-off against future income, you must file your ITR before the due date for the assessment year.

• Businesses: If you are running a business and your total turnover exceeds ₹60 lakh in a financial year, you are required to file an ITR. For professionals, if your gross receipts exceed ₹10 lakh, you must file your ITR.
• Self-Employed Individuals: Freelancers and independent contractors who have income exceeding the exemption limit are also required to file an ITR.

Individuals who engage in certain high-value financial transactions, such as:

• Cash deposits or withdrawals of ₹1 crore or more during the year,
• Electricity consumption exceeding ₹1 lakh per year, are required to file an ITR, even if their total income is below the taxable limit.

Directors of a company, irrespective of whether they receive a salary or not, are required to file an ITR. This is a requirement to ensure transparency and track high-value financial transactions involving companies.

If an individual has any foreign assets or financial interests (such as foreign bank accounts, shares, or properties), they are required to file an ITR and disclose these foreign assets, even if they have no taxable income in India.

Exemptions:

• Individuals Below the Exemption Limit: If your total income is below the basic exemption limit (₹2,50,000 for individuals below 60 years, ₹3,00,000 for senior citizens, and ₹5,00,000 for super senior citizens) and you don’t have any other income sources like foreign income or assets, you may not be required to file an ITR. However, if taxes have been deducted or if you wish to claim certain refunds, filing an ITR may be necessary.

If you have undertaken transactions such as investments in mutual funds, shares, or bonds exceeding ₹10 lakh in a year, you must file an ITR.

Here’s a tabular comparison for ITR 1, ITR 2, ITR 3, and ITR 4 forms from an individual’s perspective:

Criteria	ITR 1 (Sahaj)	ITR 2	ITR 3	ITR 4 (Sugam)
Who can file?	Resident individuals with income up to ₹50 lakh	Individuals/HUFs with income from salary, house property, capital gains, or foreign income.	Individuals/HUFs with income from business/profession along with salary, capital gains, or house property.	For individuals/HUFs with business income, presumptive income, or professional income up to ₹50 lakh.
Income Sources	Salary, pension, income from one house property, other sources (like interest).	Salary, pension, house property, capital gains, other sources, foreign income.	Income from salary, business/profession, house property, capital gains, and other sources.	Business income (presumptive taxation), professional income, salary, or pension.
Business Income	Not applicable	Not applicable	Business/professional income (non-presumptive)	Business income under presumptive taxation (Section 44AD/44ADA/44AE).
Capital Gains	Only short-term capital gains (STCG) from sale of equity shares or mutual funds.	Both short-term and long-term capital gains.	Both short-term and long-term capital gains.	Not applicable unless under presumptive taxation.
Income from Foreign Sources	Not applicable	Applicable if you have foreign income or assets.	Applicable if you have foreign income or assets.	Not applicable unless under presumptive taxation.
Income from House Property	One house property (self-occupied or rented).	Multiple house properties.	Multiple house properties.	Not applicable unless under presumptive taxation.
Deductions	Available under Chapter VI-A (e.g., 80C, 80D, 80G).	Available under Chapter VI-A (e.g., 80C, 80D, 80G).	Available under Chapter VI-A (e.g., 80C, 80D, 80G).	Available under Chapter VI-A (e.g., 80C, 80D, 80G).
Eligibility	For simple tax filers (income from salary, house property, and other sources)	For individuals with more complex income sources, including capital gains, foreign income	For individuals having business or professional income.	For individuals opting for presumptive taxation scheme under sections 44AD, 44ADA, or 44AE.
Presumptive Taxation Scheme	Not applicable	Not applicable	Available for small businesses/professionals.	Available for small businesses/professionals with an income of ₹2 crore or less (Section 44AD/44AE/44ADA).
Audit Requirement	Not applicable	Not applicable	Required if turnover exceeds prescribed limits.	Not applicable (presumptive taxation is simple).
Nature of Filing	Simplified return for individuals with simpler tax situations	More detailed form for individuals with varied income sources	Detailed return for individuals with business/professional income	Simplified return for those opting for presumptive taxation.
Filing Complexity	Simple and quick filing	Moderate complexity due to multiple income sources	Complex due to the inclusion of business/professional income	Simplified return, especially for small businesses or professionals.

• ITR 1 (Sahaj): Best for salaried individuals with simple income sources (salary, one house property, and other sources).
• ITR 2: Suitable for individuals with more diverse sources of income, including capital gains, foreign income, or multiple house properties.
• ITR 3: Designed for individuals with business or professional income, along with other income types like salary or capital gains.
• ITR 4 (Sugam): Ideal for individuals opting for the presumptive taxation scheme, typically small businesses or professionals with simpler tax filings.

The due dates for filing an Income Tax Return (ITR) in India depend on the type of taxpayer and whether they are required to get their accounts audited.

Category of Taxpayer	Due Date for Filing ITR
Individual (Salary, House Property, etc.)	July 31st of the assessment year. (For FY 2024-25, the due date is July 31, 2025).
Individuals, HUF, and Firms (with audit)	September 30th of the assessment year. (For FY 2024-25, the due date is September 30, 2025).
Taxpayers opting for presumptive taxation	July 31st of the assessment year (Same as individuals without business).

Penalty for Non-Filing of Income Tax Return:

If you fail to file your ITR by the due date, you may face the following penalties:

Condition	Penalty/Consequences
Filing After Due Date	Penalty of ₹5,000 if filed after the due date but before December 31st of the assessment year.
Filing After December 31st	Penalty of ₹10,000 if filed after December 31st but before March 31st of the assessment year.
Failure to File Return	If you fail to file your return after the due date, a penalty of ₹5,000 can be imposed under Section 271F. However, if the total income is below the taxable limit, no penalty will apply.
Interest for Delay in Payment of Tax	Interest under Section 234A: 1% per month or part of the month on the outstanding tax.
Carry Forward of Losses	Losses (e.g., business, capital gains) cannot be carried forward to future years unless ITR is filed on time.

Key Notes:

• Late Filing: The penalty for filing after the due date but before December 31st is ₹5,000, and after December 31st, the penalty increases to ₹10,000.
• Interest Charges: If you don’t pay your taxes on time, interest at 1% per month is levied on the outstanding amount.
• Loss Carry Forward: If you don’t file your ITR on time, you won’t be able to carry forward losses to offset against future income.
• Waiver of Penalty: If your total income is below the taxable threshold (₹2.5 lakh for individuals), you may not face a penalty for late filing.