ITR Filing compulsory even if Income less than Slab Limit

According to the Income Tax Act of India, people are required to file an ITR only if their annual Gross Total income exceeds the basic exemption limit. However, under certain conditions, you may be obliged to file an ITR even if your income is within the basic exemption limit.

Below is the list of such conditions:

• Saving Bank Deposits of 50 lakhs or more: Individuals who have an annual savings bank deposit of Rs.50 lakhs or more in one or more accounts are required to file ITRs.
• Current Account Deposits of more than Rs. 1 Crore: If an individual deposits Rs.1 crore or more into one or more current accounts throughout the financial year, he or she must file an ITR.
• Annual Sales Turnover above Rs. 60 lakhs: Individuals with an annual sales turnover of more than Rs.60 lakh are required to file an Income Tax Return (ITR).
• Professional income above Rs. 10 lakh: If a professional’s income exceeds Rs.10 lakh within a financial year, he or she is required to file an ITR.
• Electricity Bill Exceeding Rs. 1 Lakh: If the electricity bill of an individual for the year exceeds Rs.1 lakh, he or she must file an ITR.
• TDS/TCS of Rs. 25,000 or more: If a person’s TDS/TCS is Rs. 25,000, or more they must file an ITR. Senior citizens, on the other hand, face a Rs.50,000 threshold.
• Foreign Assets Income: If an individual owns or receives an asset in a foreign country, he or she is required to file an ITR.
• Foreign Travel Expenses: Individuals who spend more than Rs. 2 lakh on international travel for themselves or others throughout the financial year are required to file an ITR.
• Resident taxpayers with overseas assets or signing authority: If you are deemed a resident for tax purposes in India and have any assets or interests abroad, you must file an ITR. This includes assets that you directly own or from which you benefit as a beneficiary owner.
• Even if you are an authorized signatory to an account managed outside of India, you must file an income tax return. The assets you own outside of India may be movable or immovable. For example, if you travelled abroad and opened an account but failed to close it when you returned to India, you must file an ITR.

What happen if Fail to File ITR?

If you do not file an ITR by the required date, you may face a variety of implications. The following is a list of the consequences.

• Section 234F allows for late filing fees of up to Rs.5,000 (for incomes exceeding Rs.5 lakhs) or Rs 1,000 (for incomes less than Rs.5 lakhs) in case of late filing of ITR.
• Section 234A requires the taxpayer to pay interest at 1% for each month or part of a month beginning on the date following the ITR filing due date, which is July 31st.
• If you do not file your ITR on time, you will be ineligible for the loss carryover benefit.
• Non-filing of an ITR can be considered tax evasion by tax officials, and you could risk imprisonment for 6 months to 7 years.
• You won’t be able to claim the refund

Filing an Income Tax Return (ITR) might be difficult if you are new to taxes, but CA consultants offer CA-assisted ITR filing services that make the process simple and comfortable for you. Whether you need help with deductions, exemptions, or just comprehending your taxable income, online or offline CA services ensure accurate and maximum tax refunds, you can get help from them.