An income tax return is a form prescribed by the Income Tax Department through which particulars of income earned by a person, deductions, taxes paid/deducted on such income during a particular previous year are communicated to the Income Tax Department.
Who is liable to file Income Tax Return?Every person whose total income is more than the basic exemption limit i.e. 2.5 lakhs is liable to file ITR, however there are following cases where ITR filling is mandatory irrepective of total income -
- Compulsory for Companies/firms
- If you want to claim refund
- If you have entered into any transaction under te Annual Information Return
- ITR has to be filed for any income from a property under a charitable trust, religious purposes, research or for a political party, medical institution, hospital or any other institution