Under the income tax laws, all taxpayers get basic exemption from paying taxes on income up to Rs 2.5 lakh under the old tax regime. Under the new tax regime, introduced in the union budget 2020, the basic exemption limit currently is Rs 3 lakh. Usually, individual taxpayers are asked to file income tax returns (ITRs) when their total income exceeds the basic exemption limit under the new and old tax regimes. But this is not always the case as there are several other factors which decide whether a taxpayer is required to file a tax return or not.

One such condition is pertaining to your electricity bills. In the ITR form for FY 2019-20, the Modi government made some changes to the rules governing the eligibility to file various tax return forms. Notifying the changes, the Centre made filing ITR mandatory for individuals who pay electricity bills of more than Rs 1 lakh in a financial year. The changed rule also ensured that such taxpayers would not be using ITR 1 or SAHAJ anymore.

Earlier, the income tax provisions required only those individuals to file ITR whose taxable incomes were more than the exemption limit.

Also read: ITR Filing: Minute details of furnishing an error free Income Tax Return

“Generally, individual taxpayers are required to file a return of income if their total income exceeds the basic exemption limit,” says Suresh Surana, Founder, RSM India. Besides power bills of a certain amount, which make an individual eligible to file an ITR irrespective of his income status, Surana explained other scenarios under which an individual is required to file tax returns on or before the specified due date irrespective of whether their total income exceeds the basic exemption limit or not.

Following persons are required to file ITR irrespective of the income thresholds:

  1. A person who has incurred aggregate expenditure in excess of Rs 2 lakh for himself or any other person for travel to a foreign country.
  2. An individual who has deposited an amount (or aggregate of amount) in excess of Rs 1 crore in one or more current account maintained with a bank or a co-operative bank.
  3. An individual having assets located outside India or signing authority in any account located outside India.
  4. A person claiming relief under Double Taxation Avoidance Agreement (DTAA).

Additional conditions whereby return filing was made mandatory 

Moreover, the Central Board of Direct Taxes (CBDT) in April 2022 notified additional conditions whereby return filing was made mandatory.

The tax department said that filing of ITR would be mandatory if total sales, turnover or gross receipt of the business carried on by the taxpayer exceeds Rs 60 lakh during the financial year. If total gross receipt of profession carried out by the taxpayer exceeds Rs 10 lakh during the financial year, he or she needs to file ITR.

Also read: Income Tax Return 2024: What should you do if your Form 16 details don’t match with prefilled ITR form?

Among other two conditions, it said that tax filing would be required if the total of tax deducted and collected in case of a person during the financial year is Rs 25,000 or more (Rs 50,000 in case of resident individual aged 60 years or more). It is pertinent to note the threshold limit shall be enhanced to Rs 50,000 in case of a resident individual of the age of 60 years or more.

Lastly, if the aggregate deposit in one or more savings bank accounts of the person is Rs 50 lakh or more during the financial year, the individual needs to file an ITR.