Types of People Who File ITR Compulsory and Voluntary

Types of People Who File ITR Compulsory and Voluntary

As per Income Tax Act, 1961, Income Tax Return is a form that is filed by the assessee who is liable to pay the Income Tax with the Income Tax Department at the end of every financial year. There is a various form which was issued by the Department on every year basis.

Income Tax Act,1961 has a section which talks about the Income Tax Return which can be filed by the person either Compulsory or Voluntary. This section is Section 139(1).

According to this section, it is mandatory to file Income Tax Return

  •  If a person's income exceeds the basic exemption limit
  • A company or a firm whether it has any income or not
  • A resident individual having an asset outside India

Every person who is required to file his Income Tax Return should have the file it on or before the due date to avoid the serious consequences.

However, for some people, it is not mandatory to file their income tax returns to the department.

Those whose annual income does not exceed the basic exemption limit were not required to file their income tax return. However, if they voluntarily want to file their Income Tax Return, then they can do so.


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