There are certain situations where Filing an Income Tax Return is Mandatory. If you covered under any of this 10 Situations, you need to compulsory file you ITR otherwise, Income Tax Department send a Show Cause Notice.

Filing your income tax return is important to stay on the right side of the law and manage your finances well. While some people don’t have to file ITR, there are specific situations where Filing ITR is mandatory. Knowing when you must file can save you from trouble and ensure you fulfill your obligations. In this guide, I’ll highlight 10 key scenarios where filing your income tax return is a compulsory. Understanding these situations will help you navigate tax season smoothly and avoid any penalties.

According to Section 139 of the Income Tax Act, 1961 lists certain cases wherein ITR filing by an individual is mandatory even if no tax has been deducted from your income or even if you does not earn any income.

According to Section 139(1) of the Income Tax Act, 1961 Every person, being a company or a firm or being a person other than a company or a firm, if his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which is not chargeable to income-tax, shall, on or before the due date, furnish a return of his income.

Here are the 10 Situations where Income Tax Return Filling is Mandatory

Section 139 of the Income Tax Act regulates the filing of income returns. A common understanding is that the obligation to file an income tax return (ITR) arises if a person receives income on which tax has been deducted.

File your ITR if you fall into any of these Situations where Income Tax Return Filling is Mandatory.

1. If your total income exceeds the Basic exemption Limit of Rs. 250000 then you are mandatorily required to File Your ITR.
2. If You hold any Assets as a  beneficial owner or otherwise, which are located outside India or have signing authority in any account located outside India then you need to File your Income Tax Return on or before the due date.
3. If You have Deposited more than Rs. 1 crore during the year in one or more current accounts maintained with a banking company or a cooperative bank shall compulsorily require to file your Income Tax Return.
4. Any person who has incurred expenditure for himself or any other person on travel to any foreign country, then he needs to file ITR Mandatory.
5.  If more than Rs. 1 Lakh expenditure is incurred towards the consumption of electricity during any time of the previous year, then you are obliged to file your Income Tax Return.
6. Now if the Turnover of your Business is more than 60 Lakh, you are supposed to File ITR even if your Taxable Income is less than the maximum amount not chargeable to tax.
7. If you are a professional and the total gross receipts in your profession exceed Rs. 10 lakhs during the previous year, then it is mandatory to file ITR.
8. The government has now made it mandatory for every person who has a TDS of Rs 25,000 or more during the financial year to file an Income Tax Return.
9. As per the New ITR filling rules, If the amount of TCS exceeds Rs 50000 in a year then Income Tax Return (ITR) has to be filed Mandatorily.
10. If you make deposits aggregating more than Rs 50 lakh in one or more savings bank accounts in a financial year, you are required to mandatorily file Income Tax Return (ITR).

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