As per the Income Tax Act, any individual or entity whose total income in a financial year exceeds the prescribed exemption limit is required to file an income tax return (ITR) with the Income Tax Department.
The exemption limit is subject to change every year as per the Union Budget. In addition to this, there are other criteria as well that determine whether an individual or entity needs to file an ITR, such as:
1. If you are an individual or HUF and your gross total income exceeds Rs. 2.5 lakhs in a financial year (Rs. 3 lakhs for senior citizens, Rs. 5 lakhs for super senior citizens)
2. If you are a company, irrespective of whether you have made profits or incurred losses
3. If you are a partnership firm, LLP, or any other entity, irrespective of whether you have made profits or incurred losses
4. If you have incurred a loss in a financial year and want to carry forward the loss to future years for set off against future profits.
It is advisable to consult with a tax professional to determine your specific income tax filing requirements.
