When it comes to filing your Income Tax Return (ITR), it’s generally needed only if your income goes beyond the basic exemption limit of ₹2.5 lakh.
But, there are certain scenarios where you’ll have to file an ITR even if your income is below the basic exemption limit. They are as follows:
- Owning foreign assets: If you own assets in a foreign country, act as a beneficiary of such assets, or serve as a signing authority for accounts outside the country, you must file an ITR.
- High-value bank deposits: If you’ve deposited more than ₹1 crore in one or more current accounts or more than ₹50 lakhs in one or more savings bank accounts during the fiscal year, filing an ITR becomes mandatory.
- Expenditure on foreign travel: Sure, take that foreign trip but, if you spend more than ₹2 lakh for travelling abroad, it is compulsory to file an ITR.
- High electricity bills: If your electricity bill exceeds ₹1 lakh in a financial year, you are required to file an ITR.
- Business turnover: When the gross receipts or annual total sales turnover of your business exceeds ₹60 lakh, filing an ITR becomes mandatory.
- Professional income: If the gross receipts from your profession surpass ₹10 lakh in a fiscal year, you are obligated to file an ITR.
- TDS/TCS: You are required to file an ITR if the tax deducted at source (TDS) or tax collected at source (TCS) equals or exceeds ₹25,000. For senior citizens, this limit is extended to ₹50,000.
If you have made any of the above transactions, make sure to file your ITR to avoid any kind of notice from the Income Tax Department. The last date to file the belated ITR for FY 22-23 is 31st December 2023.