Fililng ITR even if income is below Basic Exemption Limit.

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Reena asked 4 months ago

Is there any situation where, we are required to file income tax return even if total income of an individual is below basic exemption limit.

Question Tags: ITR

1 Answers

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Yamini Gupta answered 4 months ago

As per Income tax Act, an Indian citizen is required to file ITR if his/her taxable income exceeds the basic exemption limit. The basic threshold will tend to differ depending on the chosen income tax regime. For the old regime, the basic exemption limit is Rs 2,50,000. Whereas, for the new one, it is set at Rs 3,00,000.
However, there are certain situations under which individuals is required to file ITRs even if their taxable income is less than the basic exemption limit. They are as follows:

Savings Account Deposits of More Than Rs 50 Lakh

In case a person deposits Rs 50 lakh or more in one or more savings accounts in the previous financial year, it is mandatory for him/her to file an income tax return.

Bank Deposits Exceeding Rs 1 Crore

If an individual deposits Rs 1 crore or more within a financial year in one or more current accounts in a commercial bank or a cooperative bank, an ITR filing is necessary. However, this rule does not apply to businesses.

Sales Turnover of More Than Rs 60 Lakh

Gross receipts or annual total sales turnovers exceeding Rs 60 lakh will require income tax return filing.

Professional Income Exceeding Rs 10 Lakh

If a person’s professional income crosses Rs 10 lakh in the previous financial year, filing an ITR is mandatory for him/her.

Electricity Bills of More Than Rs 1 Lakh

Paying an electricity bill greater than Rs 1 lakh in a single bill or on aggregate within a financial year requires individuals to file an ITR.

TDS/TCS Exceeding Rs 25,000

In case a person has Tax Deducted at Source (TDS) or Tax Collection at Source (TCS) of an amount equal to or more than Rs 25,000, ITR filing is mandatory. For senior citizens, this threshold is set at Rs 50,000.

Income From Foreign Assets

If an individual has an asset or is a beneficiary of an asset that is located in a foreign country, he/she is required to file an ITR. It is also applicable if the person has signing authority in an account which is located outside the country.