8 Instances in which you are liable to file your Income Tax Returns even when income is < Rs 2.5 lakhs
A majority of people think that if their income is less than Rs. 2.5 Lakhs, they are not liable to file Income Tax Returns (ITR). However, this is a big misunderstanding. If any of the below criteria are met, such people must file Tax returns, even if their income is below the tax threshold as per Sec 139 Rule 12AB
1) Business Sale Turnover is more than Rs 60 lakhs
If a person’s annual total sales, turnover, or gross receipts in their business surpass Rs. 60 lakhs, they are required to file an income tax return.
2) Professional Income exceeding Rs 10 Lakh
The individual must file an ITR if the sum of their professional gross revenue for the preceding year exceeded Rs 10 lakh.
3) TDS or TCS exceeds Rs 25,000
A tax return is mandatory if TDS or TCS totalled Rs 25,000 or higher. This rule will apply to senior citizens if their combined TDS or TCS is Rs 50,000 or greater each fiscal year.
4) Saving account Deposits > Rs 50 Lakhs
A person must file an income tax return if they deposited amount of Rs 50 lakh in one or more savings accounts during the previous year.
5) Current account Deposits > Rs 1 Crore
If a person has deposited an amount or aggregate of amounts exceeding Rs. 1 crore in one or more current accounts maintained with a bank or co-operative bank.
6) Foreign Travel Expenditure > 2 Lakhs
If a person has spent an amount or aggregate of amounts exceeding Rs. 2 lakh for themselves or any other person to travel to a foreign country.
7) Electricity bill exceeding Rs. 1 lakh
If a person has paid an electricity bill exceeding Rs. 1 lakh in a single bill or on an aggregate basis during the previous financial year.
8) Sale Resident Property and Reinvest in New Property
Many people assume they get deduction of capital gains automatically when they buy new resident property of value more than the one sold. However its a myth. You need to file your Tax Returns to claim deduction under section 54
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