According to Income Tax law, filing of income tax return of individuals is dependent on income threshold. Individuals are mandated to file income tax return only if their annual income crosses the basic exemption limit.
However, the law contains certain exception to the above law. It means that there are certain cases where an individual is required to compulsorily file ITR irrespective of income earned during the financial year. This article discusses the cases where filing ITR is mandatory despite the income falling below the exemption limit.
- Electricity bill exceeding Rs. 1 Lakh: Individuals whose annual electricity expenditure is more than Rs. 1 Lakh are required to file ITR compulsorily.
- Foreign Travel Expenditure exceeding Rs. 2 Lakhs: If an individual has spent Rs. 2 Lakhs or more on foreign travel of own or any other person, he is mandated to file an ITR.
- Income from foreign assets: If an individual possesses foreign assets or deriving any income from source/ asset in a foreign country, ITR filing is compulsory.
- Annual Sales more than Rs. 60 Lakhs: If an individual has a sales turnover more than Rs. 60 Lakhs, he obligated to file income tax return.
- Professional Receipts exceeding Rs. 10 Lakhs: An individual shall compulsorily file income tax return if the receipts from profession are more than Rs. 10 Lakhs during the year.
- Current Account deposits of Rs. 1 crore or more: If an individual deposits Rs. 1 crore or more in one or more current accounts maintained with a bank during the financial year, he shall be required to file return mandatorily.
- Deposits in saving bank account Rs. 50 Lakhs or more: An individual with aggregate deposits in one or more saving bank accounts Rs. 50 Lakhs or more shall file his return of income.
- TDS/TCS Rs. 25,000 or more (Rs. 50,000 in case of senior citizens): An individual (age less than 60 years) is required to file his income tax return if the aggregate amount of TDS & TCS in his case during the year is Rs. 25,000 or more. In case of senior citizens, the limit is Rs. 50,000 or more.
Non-filing or belated filing of income tax returns may lead to penal consequences. You will have to pay late fees in case income tax return is filed beyond the due date i.e. 31st July. Furthermore, taxpayers are liable to pay interest u/s 234A @ 1% per month or part thereof calculated on the amount of tax due. Failure in filing of ITR within the stipulated time limit disqualifies taxpayers from availing the benefit of carry forward of losses.
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