In India, Income Tax Returns (ITR) must be filed by individuals, Hindu Undivided Families (HUFs), companies, and firms whose annual income exceeds the basic exemption limit (generally ₹2.5 lakh to ₹5 lakh depending on age). It is mandatory for earners with taxable income, those seeking tax refunds, or those holding foreign assets.
According to section-263(1) of Income Tax Act, 2025- Following person shall furnish a return of income for a tax year, on or before the the due date: –
- Company
- Partnership Firm
- Business Trust
- Investment fund as referred to in section 224
- University, college or other institution as referred to in section 45(3)(a)
- Individual, if the total income without giving effect to the provisions of Chapter XVII-B or provisions of Schedule VIII (Table: Sl. No. 1) OR deduction allowable under section 82, 83, 84, 85, 86, 87, 88 of Chapter IV-E or Chapter VIII, as the case may be, exceeded the maximum amount which is not chargeable to income tax.
- a specified entity, if its total income without giving effect to the provisions of section 11 exceeds the maximum amount which is not chargeable to income-tax.
- a person who has sustained a loss in the tax year under the head “Profits and gains of business or profession” or under the head “Capital Gains” and who intends to claim that such loss, or any part thereof, is to be carried forward as per Income Tax Act, 2025
- a person, who is a resident, other than not ordinarily resident, and who at any time during the tax year –
(A) holds any asset including any financial interest in an entity, located outside India or has signing authority in any account located outside India; or
(B)is a beneficiary of any asset including any financial interest in an entity, located outside India, except where any income arising from such asset is includible in the income of person referred to in item (A) above
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