Are you unsure if you need to file an income tax return?

It can be confusing to know when you are required to file, but understanding the rules can help you avoid any penalties or fines.

Here are the 10 situations when it is mandatory for an individual to file an income tax return in India:

• Exceeding the maximum exemption limit: If your total income exceeds the maximum exemption limit, which is Rs. 2.5 lakh for individuals, Rs. 3 lakh for resident senior citizens (age 60 or more), and Rs. 5 lakh for resident super senior citizens (age 80 or more), you must file a return.
• Assets outside India: If you hold any asset, including any financial interest in any entity, located outside India, have signing authority in any account located outside India, or are a beneficiary of any asset located outside India, you must file a return.
• Deposits in current accounts: If you deposit Rs. 1 crore or more in one or more current accounts maintained with a bank during the previous year, you must file a return.
• Foreign travel expenses: If you have incurred more than Rs. 2 lakh on travel to a foreign country, either for yourself or for any other person during the previous year, you must file a return.
• High electricity consumption: If you have incurred more than Rs. 1 lakh on electricity consumption during the previous year, you must file a return.
• High business turnover: If the total sales, turnover, or gross receipts of your business exceeds Rs. 60 lakh during the previous year, you must file a return.
• High professional receipts: If the total gross receipts of your profession exceed Rs. 10 lakh during the previous year, you must file a return.
• TDS and TCS deductions: If the aggregate amount of tax deducted at source (TDS) and tax collected at source (TCS) in your case during the previous year is Rs. 25,000 or more, you must file a return.
• TDS and TCS deductions for senior citizens: If you are a resident senior citizen, i.e., your age is 60 years or more during the previous year, and the aggregate amount of TDS and TCS deductions is Rs. 50,000 or more, you must file a return.
• High savings bank deposits: If the aggregate deposit in one or more savings bank accounts is Rs. 50 lakh or more during the previous year, you must file a return.

If you fall under any of these categories, it is mandatory to file your income tax return. Failing to do so can lead to hefty penalties and fines. It’s essential to note that even if you are not required to file an ITR due to income below the exemption limit, you must still file an ITR if you have incurred a loss during the financial year or if you wish to claim a refund for any taxes paid. It’s always advisable to consult a tax professional to determine if you need to file an ITR.

It is important to note that the deadline for filing income tax returns for the financial year 2022-23 (assessment year 2023-24) is 31st July 2023, as per the current guidelines of the Income Tax Department of India. It’s advisable for taxpayers to file their returns before the deadline to avoid penalties and other consequences.