Is it Necessary to File Income Tax Return?
It is not necessary for everyone to file ITR but there are certain circumstances in which ITR filing is mandatory. Those circumstances are mentioned below:
1. Gross Total Income Exceeds the Exemption Limit
If your Gross total income (income before allowing for any deductions) exceeds the exemption limit.
Exemption Limits: –
- For normal taxpayer- ₹2.5 lakhs.
- For senior citizens (aged above 60 but less than 80)-₹3 lakhs.
- For super senior citizens (aged above 80) -₹5 lakhs.
Income above this limit are considered as taxable income.
2. Foreign Travel Expense
If you spend more than ₹2 lakhs in foreign travel during a financial year.
3. Electricity Bill Payment
If you pay more than ₹1 lakh for electricity during a financial year.
4. Owner of foreign assets
If you are a Resident individual and have any asset or financial interest in an entity located outside India and accruing income from the same.
5. Bank deposits
If you deposit more than ₹1 crore in one or more bank accounts in a financial year.
6. Income tax refund
If you want to claim an income tax refund.
7. Carry forward of loss
If you want to carry forward a loss to subsequent financial years.
