ITR Filing Below Basic Exemption Limit

What is Basic Exemption Limit?

The basic exemption limit is the threshold amount by which it is decided whether the individual should pay taxes or not. According to the laws made by the Income Tax department, an individual should file an Income Tax Return only if their taxable income is more than the basic exemption limit.

If the taxable income is less than the threshold, then it is not necessary to file the ITR for an individual. This basic exemption limit for ITR can be different depending on the income tax regime you choose to file the taxes. 

For the old tax regime, the threshold is Rs 2,50,000, whereas the basic exemption limit in the new tax regime is set to Rs 3,00,000 for the financial year of 2024-25. 

Conditions when Taxable Income is less than Basic Exemption Limit

There are some conditions under which individuals should file the Income Tax Return even after their taxable income is less than the threshold. They are as follows:

1. If the Deposit in the Savings Account is More Than Rs 50 Lakhs.

If an individual deposits an amount that is more than Rs 50 lakhs in one or more savings accounts in the previous financial year, then it is compulsory for them to file an ITR.

2. If the Bank Deposits Are More Than Rs 1 Crore.

In a financial year, if an individual deposits an amount of more than Rs 1 crore in the current bank accounts in cooperative or commercial banks, then they must file the ITR. This rule does not apply to businesses. 

3. If the Turnover of Sales is More Than Rs 60 Lakhs.

You have to file an ITR if the annual total sales turnover or the gross receipts are more than Rs 60 lakhs.

4. If the Professional Income is More Than Rs 10 Lakhs.

If in the previous financial year, the professional income of an individual is more than Rs 10 lakhs, then it is important to file an ITR. 

5. If the Electricity Bill is More Than Rs 1 Lakh.

If you pay the electricity bill of Rs 1 lakh in a single bill or the total amount of all the bills in the previous financial year, then the individual needs to file an ITR. 

6. If the TDS/TCS exceeds the Amount of Rs 25,000.

If any individual has the Tax Deducted at Source or Tax Collection at Source of Re 25,000 or more, then he/she has to file an ITR. For the senior citizens, this threshold amount is Rs 50,000. 

7. Income From the Foreign Assets.

You have to file an ITR if you have any assets or are a beneficiary of assets that are located in a foreign country. The same rule is also applicable if the person has the authority to sign in to an account that is located in a foreign country.

8. If the Expenditure on Foreign Travel is More Than Rs 2 Lakhs. 

If an individual spends more than Rs 2 lakhs during a foreign travel, then it is mandatory for them to file an Income Tax Return. 

9. The Mandatory Filing of a Return in Specific Cases:

It is mandatory to file an ITR if you want to carry forward your losses within the due dates. If the loss is under the head of Income from house property, then you can carry forward the loss even if the ITR is not filed before the due date. 

ITR Filing Minimum Income

The minimum income to file the Income Tax Return is dependent on the age of the taxpayer and the chosen tax regime.

As per the Old Tax Regime

• Age below 60 years: If your age is less than 60 years and your income is more than Rs 2.5 lakhs in a financial year, then you have to file an ITR. 
• Age between 60 and 80 years: The minimum gross income limit to file the ITR is Rs 3 lakhs.
• Age above 80 years: The minimum gross income limit to file an ITR is Rs 5 lakhs. 

As per the New Tax Regime

• All individuals have the same minimum gross income limit to file the ITR, which is Rs 3 lakhs.