*Mandatory Filing of Income Tax Return*

*_Please note that the law has changed and ITR for AY 2017-18 CANNOT be filled beyond 31st March 2018._*

In any of the following situations (as per the Income Tax Act) it is mandatory for you to file an Income Tax Return in India:

1. Your gross total income (before allowing any deductions under section 80C to 80U) exceeds Rs.2,50,000 in the FY 2016-17.
This limit is Rs 3,00,000 for senior citizens ( who are more than 60 years old but less than 80 years old) or Rs 5,00,000 for super senior citizens (who are more than 80 years old)

2. You are a company or a firm irrespective of whether you have income or loss during the financial year.

3. You want to claim an income tax refund

4. You want to carry forward a loss under a head of income.

5. You have exempt long term capital gains from – sale of equity shares in a company OR sale of unit of equity oriented mutual funds, OR sale of unit of business trust, of more than Rs 2,50,000 in a financial year. Even though these gains are exempt from tax, such persons have to mandatorily file an income tax return. [effective FY 2016-17, AY 2017-18]

6. Return filing is mandatory if you are a Resident individual and have an asset or financial interest in an entity located outside of India. (Not applicable to NRIs or RNORs)

7. Or if you are a Resident and a signing authority in a foreign account. (Not applicable to NRIs or RNORs)

8. You are required to file an income tax return when you are in receipt of income derived from property held under a trust for charitable or religious purposes or a political party or a research association, news agency, educational or medical institution, trade union, a not for profit university or educational institution, a hospital, infrastructure debt fund, any authority, body or trust.

9. If you are a foreign company taking treaty benefit on a transaction in India

*10. A proof of return filing may also be required at the time of applying for a loan or a visa.*

_CA Ravindra Patil_

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