Requirements for Filing ITRs...

• Individuals and NRIs

Required to file income tax return, if their income exceeds Rs.2.5 lakhs per annum.

• Partnership firms

Required income tax return - irrespective of amount of income or loss.

• Companies and LLPs

mandatorily required to file income tax return, irrespective of turnover or profit.

ITRs Due Date

For Individual taxpayers the due date for income tax return filing is 31st July

For companies and taxpayer requiring tax audit is 30th September

Tax Audit Limit:

• Business

In case of a business, tax audit would be required if the total sales turnover or gross receipts in the business exceeds Rs.1 crore in any previous year. Under the Income Tax Act, “Business” simply means any economic activity carried on for earning profits. Section 2(3) has defined the business as “any trade, commerce, manufacturing activity or any adventure or concern in the nature of trade, commerce and manufacture”.

• Profession

In case of a profession or professional, tax audit would be required if gross receipts in the profession exceeds Rs.50 lakhs in any of the previous year. A profession or professional could be any of the following as per Rule 6F of the Income Tax Rules, 1962:
1. Architect
2. Accountant
3. Authorised representative
4. Engineer
5. Film Artist – Actor, Cameraman, Director, Music Director, Editor, etc.
6. Interior Decorator
7. Legal Professional – Advocate or Lawyer
8. Medical Professional – Doctor, Physiotherapist, etc.,
9. Technical Consultant

Presumptive Taxation Scheme

If a person is enrolled under the presumptive taxation scheme under section 44AD and total sales or turnover is more than Rs. 2 crores, then tax audit would be required.Also, any person enrolled under the presumptive taxation scheme who claims that the profits of the business are lower than the profits calculated in accordance with the presumptive taxation scheme would be required to obtain a tax audit report.

Due Date for Filing Tax Audit Report

The due date for completing and filing tax audit report under section 44AB of Income Tax Act is 30th September of the assessment year. Hence, if a taxpayer is required to obtain tax audit, then he or she would be required to file income tax return on or before 30th September along with the tax audit report. In case the taxpayer is also liable for transfer pricing audit, then the due date for filing tax audit is 30th November of the assessment year.