ITR Filing 2025: Earning Little or Nothing? 5 Cases Where Filing Is Still Mandatory
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With the ITR filing deadline of 15 September just around the corner, taxpayers are rushing to complete their returns and avoid last-minute stress. Experts advise against waiting until the final hours, as technical issues on the Income Tax portal can lead to delays and unnecessary penalties.
Many believe that if their income is below the taxable limit, they don’t need to file an ITR. While that’s partially true, certain categories of individuals are required to submit their returns even with little or no income. Failing to do so could result in penalties or legal notices from the Income Tax Department.
Let’s take a closer look at who must file an income tax return even if they have little or no income:
2. Those Spending ₹2 Lakh or More on Foreign Travel
If you’ve spent ₹2 lakh or more on foreign travel in a year, whether for personal or business purposes, you are required to file an ITR. This rule helps track high-value expenses and prevent black money transactions.
4. People with TDS of ₹25,000 or More
If ₹25,000 or more has been deducted as TDS (Tax Deducted at Source) from your income, you must file an ITR. For senior citizens, this threshold is ₹50,000. This ensures that individuals whose tax has already been deducted provide accurate income details.
5. People with Foreign Assets or Accounts
If you own property abroad or have signing authority in a foreign bank account, filing an ITR is mandatory. This helps track foreign income and assets, and you must provide full details of these while submitting your return.
Filing your Income Tax Return on time is essential, even if your income is low or nonexistent. The rules are designed to ensure transparency and track unusual financial activity. By understanding these requirements, you can avoid penalties, stay compliant, and maintain a clean financial record. It’s always better to file early and stay ahead rather than face complications later.
Disclaimer: This article is for informational purposes only and does not substitute professional tax advice. Tax laws and filing requirements may change, and individual circumstances can vary. Consult a qualified tax advisor or the Income Tax Department’s official resources before filing your return.
Many believe that if their income is below the taxable limit, they don’t need to file an ITR. While that’s partially true, certain categories of individuals are required to submit their returns even with little or no income. Failing to do so could result in penalties or legal notices from the Income Tax Department.
Let’s take a closer look at who must file an income tax return even if they have little or no income:
1. Those Depositing Over ₹1 Crore in Their Current Account
If you’ve deposited ₹1 crore or more in your current account at any bank during the financial year, you must file an ITR-even if your taxable income is zero. This applies to both cash and digital deposits.2. Those Spending ₹2 Lakh or More on Foreign Travel
If you’ve spent ₹2 lakh or more on foreign travel in a year, whether for personal or business purposes, you are required to file an ITR. This rule helps track high-value expenses and prevent black money transactions.3. People Who Spend Over ₹1 Lakh on Electricity Bills
If you’ve paid more than ₹1 lakh towards electricity bills in a year, you are required to file an ITR. This rule helps the Income Tax Department identify cases where expenses are high despite a low declared income.4. People with TDS of ₹25,000 or More
If ₹25,000 or more has been deducted as TDS (Tax Deducted at Source) from your income, you must file an ITR. For senior citizens, this threshold is ₹50,000. This ensures that individuals whose tax has already been deducted provide accurate income details. 5. People with Foreign Assets or Accounts
If you own property abroad or have signing authority in a foreign bank account, filing an ITR is mandatory. This helps track foreign income and assets, and you must provide full details of these while submitting your return. Filing your Income Tax Return on time is essential, even if your income is low or nonexistent. The rules are designed to ensure transparency and track unusual financial activity. By understanding these requirements, you can avoid penalties, stay compliant, and maintain a clean financial record. It’s always better to file early and stay ahead rather than face complications later.
Disclaimer: This article is for informational purposes only and does not substitute professional tax advice. Tax laws and filing requirements may change, and individual circumstances can vary. Consult a qualified tax advisor or the Income Tax Department’s official resources before filing your return.
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