WHEN ITS MANDATORY TO FILE INCOME TAX RETURN?

Filing of Income Tax Return is mandatory in the following cases

EXEMPTION LIMIT: Your gross total income (before allowing any deductions under section 80C to 80U) exceeds Rs 2.5 lakhs in FY 2021-22. This limit is Rs 3 lakh for senior citizens (aged above 60 but less than 80) or Rs 5 lakhs for super senior citizens (aged above 80).

1) If an individual has assets outside India

An Individual, being a resident and ordinary resident in India, shall file his return of Income, even if his income does not exceed the maximum exemption limit, if he:

a) Holds, as a beneficial owner or otherwise, any asset (including any financial interest in any entity) located outside India

b) Has signing authority in any account located outside India

c) Is a beneficiary of any asset (including any financial interest in any entity) located outside India.

2) If he deposits more than Rs. 1 crore in bank account

An Individual or HUF shall file his return of Income, even if income does not exceed the maximum exemption limit, if he has deposited an amount (or aggregate of amount) exceeding Rs. 1 crore in one or more current accounts maintained with a banking company or a co-operative bank. .

3) If foreign travel expense is more than Rs. 2 lakh 

An Individual or HUF shall file his return of Income, even if income does not exceed the maximum exemption limit, if he has incurred more than Rs. 2 lakh on travel to a foreign country, either for himself or for any other person. .

4) If electricity consumption is more than Rs. 1 lakh

An Individual or HUF shall file his return of Income, even if income does not exceed the maximum exemption limit, if he has incurred an expenditure exceeding Rs. 1 lakh on electricity consumption..

The government has released a notification vide Notification No. 37/2022 dated 21st April 2022 that specifies additional conditions for filing income tax returns if income is below the basic exemption limit.

5) If total sales, turnover or gross receipt of the business exceeds Rs. 60 lakh during the previous year.

6) If total gross receipt of profession exceeds Rs. 10 lakh during the previous year.

7) If the total of tax deducted and collected in case of a person during the previous year is Rs. 25,000 or more (Rs. 50,000 in case of resident senior citizen).

8) If the aggregate deposit in one or more savings bank accounts of the person is Rs. 50 lakhs or more during the previous year

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