Following Individuals are required to file their Income Tax Returns: –

• Total Income before allowing any deductions exceeds applicable basic exemption limit.
• A resident who has or is beneficiary of asset (including financial interest in any entity) located outside India.
• A resident who is a signing authority in a foreign account.
• If deposited INR 50 Lakhs or more in one or more Savings Bank Account.
• Deposited more than INR 1 crore in one or more Current Account.
• If you incur foreign travel expenses in excess of INR 2 Lakhs.
• If your electricity bill expenditure is in excess of INR 1 Lakh in a Financial Year.
• Turnover of Business exceeds INR 60 Lakhs or Profession exceeds INR 10 Lakhs.
• TDS & TCS credit exceeds INR 25,000 for individuals under 60 years and INR 50,000 for individuals above 60 years of age.

An individual is required to file ITR if he has investments in foreign assets. However, he must disclose the details of these assets in Schedule FA of his ITR. This is mandatory for all residents and ordinarily resident Indians who hold any asset located outside India.

The following are some of the foreign assets that an individual need to disclose in Schedule FA:

• Foreign depository accounts
• Foreign equity and debt interest
• Foreign cash value insurance contracts
• Financial interest in any entity outside India

You must disclose the following information about each foreign asset:

• The name of the asset
• The country in which the asset is located
• The value of the asset
• The date on which you acquired the asset
• The source of the funds used to acquire the asset

You can E-Verify your ITR within 30 days from the date of filing your Income Tax Return. You can E-Verify using your Net banking account or Aadhaar based OTP.

A failure to E-Verify your ITR can invalidate your Income Tax Return.

You should file an income tax return to claim tax deductions for tax savings such as ELSS, PPF, NSC investments and for payments such as housing loan repayments, insurance premium and donations.

If an individual misses the due date for filing their Income Tax Return, they can still file a belated return. The belated return can be filed by 31st December of the relevant assessment year (unless extended by the government).

For FY 2022-23, you may file the belated return by 31 December 2023. However, please note a belated return can only be filed with the payment of late fees u/s 234F, subject to certain conditions.

Yes, you can file your Income Tax Return even if you do not have Form 16. Salary slips also contain the details of the deductions, which can be used in case Form 16 is unavailable.

Form 26AS and AIS/TIS are mandatory documents to file Income Tax Returns.

Penalties: The IT Department can impose a penalty of up to Rs. 5,000 for not filing an ITR on time. If you file the ITR after the due date but within a year, the penalty will be Rs. 10,000.

• Interest: If you have any tax liability and you do not file an ITR, you will be charged monthly 1% interest per month on the unpaid tax.
• Non-Carry Forward of Losses: You will be unable to carry forward any losses from a previous year if you do not file an ITR.
• Best judgment assessment: If you do not file an ITR, the assessing officer of the Income tax department will be obligated to make an assessment to the best of his judgment U/S 144 of the Income Tax Act.
• Refund of taxes: You will be able to claim a refund only if you have filed ITR

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