Filing an ITR is not determined solely by how much you earn. The Income Tax Department also takes into account financial transactions, foreign holdings and spending patterns that may require a return to be filed, irrespective of the tax payable.
Taxpayers should familiarise themselves with these often-overlooked requirements to know if they need to file ITR.
Deposits above ₹50 lakh in savings accounts
Individuals who deposit more than ₹50 lakh across their savings accounts over the course of a financial year are required to file an Income Tax Return (ITR). The obligation arises from the value of the transactions rather than income alone.
Overseas investments
Residents with assets located outside India must submit an ITR, irrespective of whether those holdings generate income. The requirement extends to foreign bank accounts, overseas stocks, financial interests in foreign businesses, signatory rights over overseas accounts and foreign assets held as a beneficiary.
₹1 crore in current account deposits
Individuals who deposit ₹1 crore or more across one or more current accounts in a financial year are required to file ITR. The condition applies irrespective of whether the accounts are with commercial or co-operative banks. Businesses, however, are not covered by this provision.
Foreign travel spending above Rs 2 lakh
Individuals who spend more than ₹2 lakh on overseas travel during a financial year must file an Income Tax Return (ITR). The requirement applies whether the expenditure is incurred for themselves or on behalf of another person.
Electricity bills above ₹1 Lakh
Paying more than ₹1 lakh towards electricity charges in a financial year can create a mandatory ITR filing obligation. The amount may be incurred through one bill or as the combined value of multiple payments.
Significant TDS Or TCS
A high level of Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) can make filing an Income Tax Return mandatory. The requirement applies when the combined amount crosses ₹25,000 during the financial year, or ₹ 50,000 in the case of senior citizens.
Professional receipts above ₹10 lakh
Professionals engaged in independent practice are required to submit an Income Tax Return if their annual gross receipts exceed ₹10 lakh. The rule applies to total professional collections rather than the profit remaining after accounting for expenses.
