Filing of Income-tax return is mandatory for every person whose income (before considering certain exemptions and deductions) exceeds the maximum exemption limit. With effect from Assessment Year 2020-21, it is mandatory for every person, who is not required to furnish return of income under any other provision of section 139(1), to file a return of income if during the previous year he:
1. Has deposited an amount (or aggregate of amount) in excess of Rs. 1 crore in one or more current accounts maintained with a bank or a co-operative bank.
2. Has incurred aggregate expenditure in excess of Rs. 2 lakh for himself or any other person for travel to a foreign country.
3. Has incurred aggregate expenditure in excess of Rs. 1 lakh towards payment of electricity bill.
4. Fulfils such other conditions as may be prescribed.
Important Notes:
- When the advance taxes have been paid, the same need to be reported to the Department through the Income-tax return filing procedure.
- This completes the self-assessment of income and taxes are computed on the same.
- Failure to file the income tax return will attract a levy of penalty.
- Form 26AS reflects the taxes which have been reported by the third party to whom the taxes have been deposited or by whom the taxes have been deducted.
- Income-tax return helps in reconciling the records as submitted by the assessee and as per Income-tax department records.
- Assessee claims a refund.
