Filing of Income Tax Return (ITR): Many individuals believe that if their income falls below a certain level, there is no need to file for Income Tax Return (ITR). There are a few situations where a person is need to file ITR even when there is no salary, or, in certain cases, tax payable. In some cases, it can legally mandatory to file ITR.Let us discuss in what situations a person has to file ITR even when their salary is below a certain tax limit.In what cases is it cirteria to legally file ITR?:1. Aggregate deposits of ₹ 50 lakh or more in savings accounts - In case a person can show that, in a financial year, he has deposited an aggregate of ₹ 50 lakh or more in a savings account, then ITR has to be filed, even if the person’s salary does not fall in the taxable bracket.2. Balance deposits beyond ₹1 crore in current account- A person who can show that he has deposited over ₹ 1 crore in the current account will have to file ITR. This condition does not apply to companies.3. Business turnover greater than ₹ 60 lakh- Any individual whose business turnover exceeds ₹ 60 lakh will be required to file an ITR regardless of profit incurred. 4. Professional earnings exceeding ₹ 10 lakh- Professionals such as doctors, lawyers, chartered accountants, or freelancers, whose earnings exceed ₹ 10 lakh are required to file ITR. 5. Aggregate electricity expenses exceeding ₹ 1 lakh- ITR needs to be filed if the electricity expenses exceed ₹ 1 lakh in the financial year. 6. TDS or TCS above ₹ 25,000- You are required to file an ITR for the year and claim refund if TDS or TCS of ₹25,000 or more (limit is ₹50,000 for senior citizens) has been deducted. 7. Possession of foreign assets or overseas bank account- ITR is required to be filed in such a case if you are a holder or signatory of an overseas bank account, even if it is dormant.8. Spending more than ₹2 lakh on foreign travel–There is a requirement to file ITR if you have spent ₹2 lakh or more on yourself or someone else’s foreign travel.Benefits of filing ITRRefund of TDS is available: Refund can be claimed for tax deducted on bank or freelance income.Create’s a strong record of finances: It serves as a reliable document for loans, visas, or government schemes.Capital loss can be set off: Prior losses can be set off against future income.Document income: It can serve as income proof during financial needs.Legal protection is provided: The government gets a record of tax payment which relieves from tax notice or audit.No penalty on late filing: In case of no tax due, there is no penalty for late filing.What is the threshold for taxation? Before filing for Income Tax Return (ITR), one should consider in which bracket their income falls under. To facilitate this, econometrics has set an exemption limit. Under the old taxation rules, working adults under the age of 60 were exempt from taxes for earning up to 2.5 lakhs, while senior citizens aged 60 to 79 years were exempted for the amount of 3 lakhs. Those aged 80 years and above were exempted up to an annual income of 5 lakhs. On the other hand, under the new taxation rules, everyone is exempt from taxes for income up to 3 lakhs, irrespective of age. Refiling for an ITR may be a prudent move to make, even if the taxes do not need to be paid.
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