Zero tax in Form 16? You may still need to file ITR
What is the Section 87A rebate? Does it remove the need to file an ITR? Why should you file an ITR even if your tax
What is the Section 87A rebate? Does it remove the need to file an ITR? Why should you file an ITR even if your tax liability is zero? Is ITR filing mandatory even if your salary is below Rs 4 lakh? Trigger / Condition Threshold Practical Illustration Deposits in Current Account(s) (Aggregate deposits in one or more current accounts with a banking company or co-operative bank) Exceeds Rs. 1 crore in aggregate during the P.Y. A business person routing vendor payments through a current account even with minimal net income Deposits in Savings Account(s) (Aggregate deposits across one or more savings bank accounts) Exceeds Rs. 50 Lakh in aggregate during the P.Y. An individual receiving frequent family transfers or rental proceeds credited to a savings account Foreign Travel Expenditure (Expenses incurred on travel to a foreign country for self or any other person) Exceeds Rs. 2 lakh in aggregate during the P.Y. Payment of airfare, hotel, and visa charges for a foreign family vacation, even if financed through credit card or LRS Electricity Consumption Expenditure (Aggregate electricity charges paid during the year) Exceeds Rs. 1 Lakh during the P.Y. Electricity bills for a large residential property or a small home-based workshop crossing the threshold Business Turnover / Sales / Gross Receipts (Total turnover or gross receipts from business) Exceeds Rs. 60 lakh during the P.Y. A trader operating under presumptive taxation u/s 44AD with turnover crossing Rs. 60 lakh but income within exemption limit Professional Gross Receipts (Total gross receipts from a profession) Exceeds Rs. 10 Lakh during the P.Y. A freelance consultant or practicing professional (e.g., architect, designer) with billing above Rs.
10 lakh but after deductions income falls below exemption Aggregate TDS / TCS (Total Tax Deducted at Source and/or Tax Collected at Source during the year) Aggregate equals or exceeds Rs. 25,000 (Rs. 50,000 for Senior Citizens aged 60+) An individual with FD interest, rent, or freelance income where banks/payers deduct TDS even if gross income is below the exemption limit Ownership of Foreign Assets / Signing Authority in Foreign Accounts (Resident and ordinarily resident individual who (i) holds an asset outside India (as beneficial owner or otherwise), (ii) is a beneficiary of a foreign asset, or (iii) has signing authority in any account located outside India) No monetary threshold; existence of such asset/authority is sufficient An employee holding ESOPs of a listed foreign parent company, or a director with signing authority on an overseas subsidiary's bank account Important points taxpayers should know High credit card spending alone is not a mandatory ITR filing trigger. However, foreign exchange-related transactions, overseas travel spends, remittances, and other high-value transactions may be reflected in AIS/SFT reporting. Therefore, taxpayers should reconcile AIS/Form 26AS and consider filing an ITR where such transactions are significant or inconsistent with the declared income profile. The Seventh Proviso to Section 139(1) was inserted by the Finance (No. 2) Act, 2019, effective from AY 2020-21. Rule 12AB was later notified to expand the prescribed mandatory filing triggers. Non-compliance with mandatory filing provisions and late filing may attract consequences, including fee under Section 234F. In cases involving non-disclosure of foreign assets, significant penalty exposure may also arise under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, depending on the facts.
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