ITR Must! 8 Transactions That Make Filing Compulsory

ITR Must! 8 Transactions That Make Filing Compulsory

As per the Income Tax Act, 1961, filing ITR is not always compulsory if an individuals income is below the basic exemption limit of Rs 2.5 lakh under the old tax regime or Rs 3 lakh under the new tax regime.

However, the tax rules suggests individuals that no matter if the their income is below the basic exemption limit, they should still file an ITR if they engage in mentioned transactions.

Several questions arises in taxpayers mind one of which is: Do taxpayers need to file ITR if taxpayers have any foreign assets or foreign income?

The answer to the above questions is, If a resident individual retain assets including bonds of foreign companies, shares, a house in foreign countries or has income including dividends, interest or rent from foreign countries, then filing ITR is a must. Also, if in case an individual invests his money in foreign assests in his parent’s name and the income of his parents is less than the basic exemption limit then in such case ITR filing is Compulsory too but for the parent as per Section 139(1) of the Income-tax Act.