Even if your annual income is less than ₹2.5 lakh (old system) or ₹3 lakh (new system), filing an ITR is mandatory under certain circumstances. For example, spending more than ₹2 lakh on foreign travel, a large deposit in bank accounts, TDS/TCS deduction exceeding ₹25,000, electricity bill over ₹1 lakh, or owning property/income abroad.
ITR filing 2025: According to the rules of the Income Tax Department, people with low incomes may also be required to file an ITR. If someone has spent more than ₹2 lakh on foreign travel, deposited more than ₹50 lakh in a savings account or ₹1 crore in a current account, had more than ₹25,000 deducted as TDS/TCS, has a business turnover exceeding ₹60 lakh or professional receipts above ₹10 lakh, or paid an electricity bill exceeding ₹1 lakh annually, then filing an ITR is mandatory. Failure to do so can result in penalties and difficulties in financial transactions.
What is the exemption limit in income tax law
As per the Income Tax Act, 1961, it is not mandatory to file an ITR if your annual income is less than ₹2.5 lakh under the old tax system or less than ₹3 lakh under the new tax system. However, the same law also states that there are certain transactions for which it is necessary to file an ITR, regardless of your income.
Large expenditure on foreign travel
If you have spent ₹2 lakh or more on foreign travel in the last financial year, it is mandatory to file an ITR. This applies even if your total income is below the tax exemption limit. The Income Tax Department assesses this based on your expenditure.
Foreign property or income
If you own any property abroad or have earned any income from there, such as dividends from shares of foreign companies or rent from a property, it is mandatory to file an ITR. This provision has been made to curb black money and ensure transparency.
Higher TDS or TCS deducted
If TDS or TCS of ₹25,000 or more has been deducted from you during the financial year, it becomes mandatory to file an ITR. For senior citizens, this limit is ₹50,000. This rule ensures that the matter does not remain incomplete after tax deduction without filing a return.
Large deposit in current account
If you have deposited an amount of ₹1 crore or more in a bank's current account within a year, it becomes mandatory to file an ITR. In such a situation, the Income Tax Department assumes that the source of such a large sum should be clear.
High deposit in savings account
If you have deposited a total of ₹50 lakh or more in a savings account in a financial year, the Income Tax Department will take notice. In such cases too, it is necessary to file an ITR, even if your income is not taxable.
Business turnover exceeding the prescribed limit
If you are in business and your annual turnover is ₹60 lakh or more, filing an ITR is mandatory. This provision is irrespective of your actual profit.
Income from professional services
The rules are also strict for doctors, lawyers, architects, consultants, or those involved in any other professional services. If your total professional receipts exceed ₹10 lakh, it becomes necessary to file an ITR.
Higher spending on electricity bill
If you have paid a total of ₹1 lakh or more towards your electricity bill throughout the year, it is also an indication for the Income Tax Department to scrutinize your financial status. In such cases, filing an ITR is mandatory.
Why have these conditions been imposed
The objective of these provisions is to ensure that individuals incurring high expenses or making large transactions are not outside the tax system. The Income Tax Department believes that if a person spends or deposits a large amount, the details of their financial status must be available with the government. This is why filing an ITR has been made mandatory in such cases.
