Avoid penalties, file your ITR if you've crossed any financial thresholds, even with income under Rs. 2.5 lakhs or Rs. 3 lakhs.
Vanshika verma | Sep 8, 2025 |
ITR Must! 8 Transactions That Make Filing Compulsory
As per the Income Tax Act, 1961, filing ITR is not always compulsory if an individuals income is below the basic exemption limit of Rs 2.5 lakh under the old tax regime or Rs 3 lakh under the new tax regime.
However, the tax rules suggests individuals that no matter if the their income is below the basic exemption limit, they should still file an ITR if they engage in mentioned transactions.
Several questions arises in taxpayers mind one of which is: Do taxpayers need to file ITR if taxpayers have any foreign assets or foreign income?
The answer to the above questions is, If a resident individual retain assets including bonds of foreign companies, shares, a house in foreign countries or has income including dividends, interest or rent from foreign countries, then filing ITR is a must. Also, if in case an individual invests his money in foreign assests in his parent’s name and the income of his parents is less than the basic exemption limit then in such case ITR filing is Compulsory too but for the parent as per Section 139(1) of the Income-tax Act.
Filing an income tax return after the deadline may result in a late filing penalty. As per Section 234F of the Income-tax Act, 1961, a late filing fee will be imposed:
Here are some conditions mentioned under which filing ITR is compulsory even if taxpayers income is below the basic exemption limit of Rs 2.5 lakh under old regime and Rs 3 lakh under new regime.
| Conditions | Meaning of the conditions | |
| 1 | Spent Rs 2 lakh or more on foreign travel | Includes spending by you or someone else for travel abroad. |
| 2 | Hold foreign assets, income, or signing authority overseas | Applies to residents; you’ll need to report these details. |
| 3 | TDS or TCS of Rs 25,000 or more (Rs 50,000 for seniors) | Total tax deducted or collected in the year triggers filing. |
| 4 | Deposits over Rs 1 crore in current accounts | Even aggregated deposits across multiple accounts force filing. |
| 5 | Deposits over Rs 50 lakh in savings accounts | Total savings deposits in the year must be reported. |
| 6 | Business turnover exceeds Rs 60 lakh | Applies even if business profit is low or zero. |
| 7 | Professional gross receipts exceed Rs 10 lakh | Consultancy, medical, legal, etc.—any professional income over this limit mandates ITR. |
| 8 | Paid Rs 1 lakh or more in electricity bills | Aggregate spending across the year counts |
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