It’s not just about salary—these 9 conditions also make filing an ITR mandatory! Are you making a mistake?

Most people believe that filing an Income Tax Return (ITR) is required only when their annual income exceeds the tax exemption limit. However, according to income tax rules, this is not always the case. There are several instances where filing an ITR becomes mandatory even if your income does not fall within the taxable bracket. Situations such as large bank transactions, expenditure on foreign travel, high electricity bills, business turnover, and ownership of foreign assets make ITR filing necessary.

**Keep an eye on income and major financial transactions**
Under the new tax regime for the financial year 2025-26 (Assessment Year 2026-27), income up to ₹4 lakh is exempt from tax. In contrast, under the old regime, the exemption limit is ₹2.5 lakh for individuals under 60 years of age, ₹3 lakh for senior citizens, and ₹5 lakh for individuals aged 80 years or older. If your income exceeds these limits, filing an ITR is mandatory.

Additionally, you are required to file an ITR if the aggregate deposits in one or more of your savings bank accounts exceed ₹50 lakh, or if the total deposits in a current account exceed ₹1 crore during the financial year.

**Foreign travel, electricity bills, and professional income are also significant**
If you have spent more than ₹2 lakh on foreign travel—whether for yourself or for another person—during a financial year, filing an ITR becomes necessary. Similarly, if your electricity bills for the year exceed ₹1 lakh, filing a return is mandatory.

Professionals such as doctors, lawyers, architects, consultants, and freelancers must also file an ITR if their annual professional receipts exceed ₹10 lakh. For business owners, the threshold is an annual turnover of ₹60 lakh. Rules regarding TDS, foreign assets, and bank accounts also apply.
Filing an ITR becomes mandatory if your total TDS or TCS during the financial year amounts to ₹25,000 or more for general taxpayers, or ₹50,000 or more for senior citizens.

Furthermore, if you are a resident of India and hold assets abroad, possess a financial stake in a foreign entity, or have the authority to operate a foreign bank account, you are required to file an ITR regardless of your income level.

Filing returns on time is prudent.
Experts state that filing an ITR on time not only ensures compliance with legal regulations but also facilitates future processes such as obtaining loans, applying for visas, claiming tax refunds, and handling other financial matters. Therefore, it is essential to review your income, bank transactions, and other financial activities before filing your return, and to seek advice from a tax expert if necessary.

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