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Beyond Income: 9 Triggers That Make ITR Filing Compulsory
Income below exemption? You may still need to file ITR if you deposited over ₹50L in savings, spent ₹2L on foreign travel, or hold foreign assets. Know the triggers for FY2025-26.
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Failing to file an Income Tax Return when required can draw penalties, even if no tax is due. The Income Tax Act lists several conditions beyond income that make filing mandatory for FY2025-26 (AY2026-27). Many taxpayers assume the obligation starts only when earnings cross the basic exemption limit. The law says otherwise.
Income thresholds
The old tax regime sets the exemption limit at ₹2.5 lakh for individuals under 60, ₹3 lakh for those aged 60-79, and ₹5 lakh for those 80 and above. Under the new regime, the limit is ₹4 lakh for all ages. Any income above these figures triggers a filing requirement.
Bank deposits and spending
Depositing more than ₹50 lakh in aggregate into one or more savings bank accounts during the year makes filing compulsory, regardless of taxable income. The same applies if aggregate deposits into current accounts exceed ₹1 crore.
Spending over ₹2 lakh on foreign travel for yourself or any other person in the financial year also triggers the requirement. Annual electricity bills exceeding ₹1 lakh do the same.