ITR Rules: Penalty possible even with low income; those earning ₹4 lakh are also on the list—read the conditions

ITR Rules: The deadline for filing Income Tax Returns (ITR) is fast approaching. Even individuals with low income may be required to file a return under certain circumstances.

ITR Rules: With the income tax filing deadline drawing near, anyone who hasn't filed their ITR yet should do so immediately. If you believe you are exempt from filing ITR because your income is low, you might be mistaken; it is important to understand the rules before proceeding.

Should you file tax on an income of ₹4 lakh?

Generally, filing an ITR is mandatory if your annual income exceeds ₹4 lakh under the new tax regime or ₹2.5 lakh under the old tax regime. However, in certain cases, filing an ITR is mandatory even if your income is below these thresholds. It is crucial for both taxpayers and non-taxpayers to be aware of these rules.

Situations where filing ITR is mandatory

If you are unaware of the situations that make filing an ITR mandatory, here is the information:

You must file an ITR if you have deposited more than ₹1 crore in your current account during the financial year.
You must file an ITR if you have spent more than ₹2 lakh on foreign travel for yourself or another person.
You must file an ITR if your electricity bill exceeds ₹1 lakh during the year.
You must file an ITR if you own assets abroad, have investments in a foreign company, or hold signing authority for a foreign bank account.

ITRs filed so far

According to the Income Tax Department, over 3 crore Income Tax Returns (ITRs) have been filed so far for the Assessment Year 2026-27. On July 21 alone, more than 15 lakh people filed their ITRs. The deadline for filing ITR-1 and ITR-2 is July 31, 2026. If you haven't filed your ITR yet, there is still time; file your income tax return before it's too late.