Despite the government making up to ₹12 lakh income tax-free with rebates in the new regime, many taxpayers still need to file ITRs even when no tax is payable. According to income tax rules, individuals whose taxable income remains below the applicable exemption limit are generally not required to file an ITR. However, people with higher income levels need to submit their ITR despite zero tax liability. In the new regime, basic income exemption limit is only ₹4 lakh, while in the old regime it stands at ₹2.5 lakh. Filing ITR helps create an official record of income and financial activity, and is necessary to claim certain tax refunds, including excess tax deducted at source (TDS). As per Mint, the most common mistake taxpayers make is assuming that zero tax means no filing requirement - "No tax" does not mean "no return" - filing is still mandatory whenever gross income crosses the basic exemption limit.
According to reports from Mint, resident individuals must file an ITR if they own assets located outside India, have financial interest in overseas entities, are beneficiaries of foreign assets, or possess signing authority in foreign bank accounts. Additionally, return filing becomes mandatory if foreign travel expenditure exceeds ₹2 lakh during the financial year, regardless of tax liability. This provision has become increasingly relevant as more Indians invest in US stocks, foreign exchange-traded funds (ETFs) and other overseas assets. The rule applies regardless of tax liability, making it crucial for taxpayers to understand these requirements even when no tax is payable. As per the latest guidance, foreign travel spending of more than ₹2 lakh during the year, including funding trips for others such as parents or children, triggers mandatory filing requirements.
As reported by Mint, ITR filing is mandatory if aggregate tax deducted at source (TDS) and tax collected at source (TCS) exceeds ₹25,000 for most taxpayers and ₹50,000 for senior citizens. Individuals who deposit more than ₹50 lakh in one or more savings bank accounts during the financial year are required to file returns, while those with deposits exceeding ₹1 crore in current accounts must also file. These provisions form part of the government's framework for tracking high-value financial transactions and commonly affect fixed deposit holders, professionals, consultants, and other high-income earners. The latest guidance confirms that depositing ₹1 crore or more in current accounts with banks or cooperative banks triggers mandatory filing, even if total income remains below the exemption limit.
According to Mint, individuals carrying on business must file returns if total sales, turnover or gross receipts exceed ₹60 lakh during the financial year, with the threshold linked to turnover rather than profits. Professionals such as doctors, lawyers, architects, consultants, freelancers and other self-employed individuals must file if gross professional receipts exceed ₹10 lakh during the financial year. The threshold is based on gross receipts and not net earnings, making it essential for professionals to understand these requirements even when no tax is payable. These thresholds remain unchanged from previous years, with business turnover above ₹60 lakh and professional gross receipts above ₹10 lakh continuing to trigger mandatory filing requirements.
As reported by Mint, taxpayers whose electricity consumption expenditure exceeds ₹1 lakh during the financial year are required to file ITRs. The most common filing requirement remains income exceeding the prescribed exemption limit, with the calculation based on income before claiming specified deductions and exemptions under Sections 80C to 80U. For AY 2026-27, the basic exemption limit under the new tax regime is ₹4 lakh, while under the old tax regime, exemption limits range from ₹2.5 lakh to ₹5 lakh depending on age and status. The latest guidance confirms that electricity bills exceeding ₹1 lakh during the year trigger mandatory filing requirements, regardless of whether income falls below the exemption limit.
