Income Tax Return (ITR) is a form which a person is supposed to submit to the Income Tax Department of India. It contains information about the person’s income and the taxes to be paid on it during the year. … Income can be of various forms such as : Income from salary. Profits and gains from business and profession
Who Should file ITR?
Following has to file Income Tax Return:
- Individuals (Resident of India & NRI’s) – Mandatory for people exceeding the prescribed income limit. Optional for others
- Sole Proprietors
- LLPs and Partnership Firm
The ITR filing is mandatory for Partnerships Firm, Sole Proprietorship Firm, Companies, and LLPs irrespective of their turnover, income, profit or loss.
Individuals are also classified as residents and Non-resident Indians. The resident taxpayers are liable to pay tax on the global income in India ( Both on income earned in India and Abroad). Whereas those who are identified as Nonresident Indians need to pay the taxes only on the income earned or that is accrued in India.
The resident individuals are further classified based on their age group.
- Individuals who are less than 60 years of age
- Individuals between 60 to 80 years of age
- Individuals aged more than 80 years.