Who is required to file Income Tax Returns (ITR) for AY2019-2020?

Who is required to file Income Tax Returns (ITR) for AY2019-2020Who is required to file Income Tax Returns (ITR) for AY2019-2020?


I was casually having a chat with a few of my colleagues (who are juniors) about their tax planning. While these are juniors to me, these individuals are earning handsome salary and paying income tax too. However, when the topic came about filing income tax returns, they just skipped the discussion saying their income is low and they need not worry about filing income tax returns. There are many individuals who pay income tax and might not file income tax returns (ITR) in India thinking these are exempted from filing tax returns. Due to their ignorance, they would end up in trouble at later point of time. In this article, I would provide you about details about who is required to file income tax returns (ITR) in India in Financial year 2018-19 i.e. Assessment Year 2019-2020.

Also Read: How to pre-validate your bank account for income tax refund?

What is Income Tax?


Skip if you are already aware of this.

In simple terms, income tax is the tax levied on your personal income. This income could be salary, salary from profession or business, income from shares, income through stock options, etc., If you are receiving any such income, income tax would be calculated after removing minimum exemptions as per the various income tax act.

What is Income Tax Return (ITR)?


An income tax return (ITR) is the income tax form / forms used to file income tax with the Income Tax Department in India. The tax return is usually in a predefined worksheet format where the income figures used to calculate the tax liability.

Who is required to file Income Tax Returns (ITR) in India?


Who should file income tax return for assessment year 2019-2020.

1) As per section 139(1) of income tax act, any individual whose gross total income exceeds than Rs 2.5 and below 60 years of age is required to file tax returns.

2) Any senior citizen who is above 60 years, but below 80 years and whose gross total income exceeds than Rs 3 Lakhs has to file ITR.

3) Any super senior citizen who is above 80 years and whose gross total income exceeds than Rs 5 Lakhs is required to file ITR.

4) If yours is a Partnership Firm or Company, irrespective whether it has profit or loss is required to file ITR.

5) If you want to claim any income tax refund in a financial year, you need to file ITR before deadline. Filing income tax return after the deadline, you would lose the opportunity to claim tax refund.

6) If you have any carry forward of losses, you should file ITR.

7) Resident Persons having assets or financial interest in a company outside India are required to file ITR. This is not applicable to NRIs.

8) Resident Persons having signing authority in foreign account need to file tax returns.

9) Foreign company taking treaty benefit on a transaction in India has to file tax returns.

10) If you wish to apply for a personal loan or a home loan or credit card or visa, you need to submit ITR which can benefit you.

11) If an individual receives income from property that is held under any trust which is for charitable purposes or any research association, educational center or any medical centre, trade union or any non-profit university.

Do NRI need to file Income Tax Return (ITR) in India?


If any NRI has received gross income above Rs 2.5 Lakhs before any exemptions in India, they need to file income tax returns too.

Is it mandatory to file an income tax return below 5 lakhs?


There are certain income tax exemptions being provided to individuals who are earning below Rs 5 Lakhs. However, income tax return should be still filed.

You may like: How to avoid TDS by submitting Form 15G and 15H?

What happens if you do not file Income Tax Returns (ITR) in India?


If you don’t file income tax returns before deadlines (31st July every year, but for FY2018-19 it is extended to 31st August), there are penalties levied by income tax authorities. Let us look at some of the penalty details.

1) The individual has to pay income tax + interest till the date of filing income tax returns.

2) You need to pay a penalty of Rs 5,000 if you file an income tax return after the deadline but before 31st December.

3) You need to pay a penalty of Rs 10,000 if you filed income tax return after the deadline but before 31st March.

4) The penalty is Rs 1,000 for those whose income is upto Rs 5 Lakhs only as per new section 234F.

5) No ITR is accepted after the above dates.

6) In extreme cases, IT Officer can impose imprisonment along with above penalty:

a) If the income tax liability is < Rs 25 Lakhs, imprisonment of 3 months to 2 years.

b) If the income tax liability if > Rs 25 Lakhs, imprisonment of 6 months to 7 years.

If you enjoyed this article, share it with your friends and colleagues through Facebook and Twitter.

Suresh KP

Who is required to file Income Tax Returns (ITR) for AY2019-2020

2 comments

  • Suresh Anand

    Hi Suresh, thanks for your article. Can you please provide info on advance tax payment?
    – How to calculate advance tax for salaried people, business people, for those who have only capital gains (NRIs)?
    – Is there a deadline for advance tax payment?
    – Is there any penalty for not paying advance tax? If then, how is it calculated?

    Appreciate your comments on these. Thanks.

Leave a Reply

Your email address will not be published. Required fields are marked *