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People often assume that if their income falls below the taxable limit, they do not need to file an Income Tax Return (ITR). However, the reality is different. According to Income Tax Department rules, there are several situations where filing an ITR becomes mandatory, even if one's income is low. Ignoring these rules could lead to notices, penalties, and other complications in the future.

Why is filing an ITR necessary even without income?
An ITR is not merely a means to pay taxes; it serves as an official record of your income. It is considered crucial for bank loans, visa applications, and building a financial profile. Additionally, filing an ITR is necessary to claim a refund if TDS (Tax Deducted at Source) has been deducted.

Here are 7 key reasons why filing an ITR is mandatory:

1. Large transactions in a bank account

If you have deposited more than ₹1 crore in your current account during a financial year, you must file an ITR, regardless of how low your income is.

2. High expenditure on foreign travel

If you have spent more than ₹2 lakh on foreign travel during the year, filing an ITR becomes mandatory.

3. High electricity bill

If your annual electricity bill exceeds ₹1 lakh, you are required to file an ITR.

4. Significant earnings from business or profession

If a person's business turnover exceeds ₹60 lakh or professional income exceeds ₹10 lakh, filing an ITR is mandatory, even if no tax liability arises.

5. Large savings deposits in the bank

If you have deposited ₹50 lakh or more in your savings account within a year, filing an ITR is mandatory.

6. Foreign assets or income

If you hold any assets, bank accounts, or financial interests abroad, you must file an ITR without fail, even if your income is zero. 7. Excess TDS Deducted

If TDS/TCS of ₹25,000 or more (₹50,000 for senior citizens) has been deducted from your account, filing an ITR is mandatory so that you can claim a refund.

What happens if you do not file an ITR?
If you fail to file an ITR in these situations:

*   You may receive a notice from the Income Tax Department.
*   A penalty may be imposed.
*   Your refund could get stuck.
*   You might face difficulties in obtaining loans or visas in the future.

Therefore, make sure to file your ITR.

Disclaimer: This content has been sourced and edited from Dainik Jagran. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.