People whose income surpasses the maximum exemption limit are required to file the Income Tax Return.ITR must be filed if gross total income exceeds Rs 2.5 lakh in fiscal year, for people under 60 years of age.For income tax reasons, a resident who is 60 years of age or older but less than 80 at any point in the prior year is considered a senior citizen. An individual resident who is 80 years of age or older at any point in the previous year is considered a super senior citizen.Nevertheless, senior citizens 75 years of age and older are exempted from filing income tax returns under certain conditions, according to Section 194P of the Income Tax Act, 1961, which became effect on April 1, 2021.The conditions for the exemption are as follows:- A senior citizen must be a ‘Resident’ in the previous year.- A senior citizen needs to be 75 years of age or older.- A senior citizen should only have pension and interest income, with the interest income accrued/earned from the same specified bank that provides their pension.- The senior citizen will provide a declaration to the specified bank.- The bank, specified by the Central Government, will be responsible for deducting TDS for senior citizens after considering deductions under Chapter VI-A and rebates under 87A.- Once the specified bank deducts tax for senior citizens above 75 years of age, there will be no requirement for them to furnish income tax returns.ITR for Individuals with below-threshold incomeThe conditions required to file an ITR, if the individual’s income is below the threshold are as follows:- When individuals have assets outside of IndiaRegardless of income not surpassing the maximum exemption level, an individual (resident and ordinary resident in India) is required to file an income tax return if he/she:1. Holds any asset (including any financial interest in any entity) located outside India, whether as a beneficial owner or otherwise,2. Holds signing authority in any account located outside India, and3. Is a beneficiary of any asset (including any financial interest in any entity) located outside India.Under the seventh proviso to section 139 (1)Regardless of gross total income, if the assessee falls under the seventh proviso of Section 139(1), filing an income tax return is mandatory. According to this clause, people who would not have been required to file a return if their income did not exceed the maximum exemption limit must do so if, in the preceding year, they have:- Deposited more than Rs 1 crore in one or more current accounts maintained with a bank or a cooperative bank,- Incurred more than Rs 2 lakh for oneself or any other person for travel to a foreign country, or- Incurred more than Rs 1 lakh towards payment of an electricity bill,- Total sales, turnover, or gross receipts of business exceed Rs 60 lakh during the previous year,- Total gross receipts in a profession exceed Rs 10 lakh during the previous year,- The total tax deducted and collected during the previous year is Rs 25,000 or more. The threshold limit shall be Rs 50,000 in the case of a resident individual of the age of 60 years or more, or The aggregate deposit in one or more savings bank accounts of the person is Rs 50 lakh or more during the previous year. (Inputs from News18)
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