Navigating the Maze: When You Must File an ITR

Navigating the Maze: When You Must File an ITR

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Don’t Have Taxable Income? You May Still Need to File an ITR!

Many people believe that filing an Income Tax Return (ITR) is only necessary when you have taxable income. However, that’s not always the case. The government has made it mandatory to file an ITR even if your income is below the basic exemption limit, particularly if you’ve made certain high-value expenditures or have specific financial transactions.

Here are the key situations where you must file an ITR, regardless of your total income:

Mandatory Filing Based on Spending

  • Foreign Travel: Did you spend over ₹2 lakh on foreign travel for yourself or anyone else? If so, you’re required to file an ITR.
  • Electricity Bills: If your total electricity consumption bills in a financial year exceed ₹1 lakh, you must file an ITR.

Other Mandatory ITR Filing Conditions

Beyond these expenses, there are other financial activities that trigger the mandatory ITR filing requirement:

  • High-Value Deposits in Bank Accounts:
    • Current Accounts: If you have deposited ₹1 crore or more (in aggregate) into one or more current accounts.
    • Savings Accounts: If your total deposits in one or more savings accounts amount to ₹50 lakh or more.
  • High Business Turnover or Professional Receipts:
    • Business: If your business sales, turnover, or gross receipts exceed ₹60 lakh.
    • Profession: If your gross receipts from a profession are more than ₹10 lakh.
  • Significant TDS/TCS:
    • If the total of your Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) is ₹25,000 or more.
    • This limit is higher for senior citizens (age 60 and above), who must file if their total TDS and TCS is ₹50,000 or more.

General Rule for Filing

Of course, the most common reason to file an ITR is if your gross total income (before any deductions) is more than the basic exemption limit. Remember, these limits vary based on the tax regime you choose (old vs. new) and your age.

Important Dates: The due date for filing ITR for Assessment Year 2025-26 in non-audit cases is September 15, 2025. Make sure you don’t miss the deadline to avoid penalties!

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