8 times when you MUST file income tax return

These situations require mandatory filing of Income Tax Return as per the provisions of the Income Tax Act, 1961

Illustration: Uttam Ghosh/Rediff.com

A lot of individuals, who do not have any tax payable, are unsure if they still need to file the income tax return or not.

This also happens when employees declare all their other income (income other than the salary income) to their employer and in those cases the employers do appropriate tax deduction on all income sources taken together.

So in such cases, a lot of assessees get confused if one should file an income tax return if no tax is payable or where all the taxes are already paid by way of self assessment tax or advance tax or TDS.

Following are the situations when Income Tax Return is required to be mandatorily filed as per the provisions of the Income Tax Act, 1961:

1. Gross total income (before allowing any deductions under section 80C to 80U) exceeds Rs 2,50,000 in the financial year.

2. The above limit is higher at Rs 3,00,000 for senior citizens (defined as individuals more than 60 years old but less than 80 years) or Rs 5,00,000 for super senior citizens (who are more than 80 years old)

3. Excess TDS has been deducted on some income or excess advance tax or self-assessment tax has been paid during the year and an income tax refund is sought to be claimed.

4. If a loss is sought to be carried forward under a head of income.

5. For a company or a firm, it's mandatory to file Income Tax Return irrespective of whether it earned income or loss during the financial year.

6. Return filing is also mandatory if you are a Resident Individual and have an asset or financial interest in an entity located outside India (Not applicable to Non Resident Indians or Resident but Not Ordinarily Residents)

7. If you are a Resident and have a signing authority in a foreign account. (Not applicable to Non Resident Indians or Resident but Not Ordinarily Residents)

8. When you have received any income from property held under a trust for charitable or religious purposes or a political party or a research association, news agency, educational or medical institution, trade union, a not-for-profit university or educational institution, a hospital, infrastructure debt fund, any authority, body or trust.

The author Harneet Kaur is a chartered accountant, CPA and chief editor at taxzippy.