What are the 8 scenarios where ITR filing is mandatory even if income is below the exemption limit?

The 8 scenarios include: spending over ₹2 lakh on foreign travel, owning foreign assets or earning foreign income, deduction of ₹25,000+ TDS/TCS, having a business turnover over ₹60 lakh or professional receipts over ₹10 lakh, paying an electricity bill of ₹1 lakh or more, depositing ₹1 crore+ in a current account or ₹50 lakh+ in a savings account, and claiming long-term capital gains tax exemption.

Why does the article say ITR filing is mandatory for a parent if their child invests in foreign shares?

If the individual invests in foreign shares in their parent's name, and the parent's income is below the basic exemption limit, then ITR filing becomes mandatory for the parent.

Home / Business and Economy / 8 Surprising Scenarios Where ITR Filing is Mandatory Below Exemption Limit

8 Surprising Scenarios Where ITR Filing is Mandatory Below Exemption Limit

Q: How much TDS or TCS deduction triggers mandatory ITR filing?

According to the article, if the TDS or TCS deducted or collected from an individual is ₹25,000 or more, then ITR filing becomes mandatory for that person.

30 Jul

•

Summary

ITR filing mandatory even if income below basic exemption limit
Spending over ₹2 lakh on foreign travel triggers mandatory filing
Owning foreign assets or earning foreign income requires ITR filing
Deduction of ₹25,000+ TDS/TCS makes ITR filing compulsory

8 Surprising Scenarios Where ITR Filing is Mandatory Below Exemption Limit

According to the article, while many taxpayers believe they only need to file an income tax return (ITR) if their gross taxable income exceeds the basic exemption limit, this is not always the case. The article outlines 8 specific situations where ITR filing is mandatory, even if the taxpayer's total income is below the exemption limit.

Firstly, if a resident individual spends ₹2 lakh or more (in one go or in aggregate) on foreign travel in a financial year, they are required to file an ITR. Additionally, taxpayers who hold foreign shares, assets, or earn foreign income must also file an ITR, as any dividends received from foreign shares are taxable.

The article also states that ITR filing becomes mandatory if the total TDS or TCS deducted or collected from an individual is ₹25,000 or more. Furthermore, taxpayers engaged in business with a turnover exceeding ₹60 lakh or in a profession with gross receipts over ₹10 lakh must file an ITR, regardless of their total taxable income.

Other scenarios where ITR filing is compulsory even below the exemption limit include paying an electricity bill of ₹1 lakh or more, depositing ₹1 crore or more in a current account or ₹50 lakh or more in a savings account, and claiming long-term capital gains tax exemption.

The article emphasizes that taxpayers must be aware of these lesser-known ITR filing requirements to avoid any potential penalties or legal issues.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.