The deadline for filing Income Tax Return (ITR) for Assessment Year 2026-27 is approaching quickly, and taxpayers are actively submitting their returns.
More than 3 crore ITRs have already been filed, with over 15 lakh returns submitted on July 21 alone.
The deadline of July 31, 2026 applies mainly to taxpayers who need to file ITR-1 and ITR-2.
While many people believe ITR filing is required only when income crosses the exemption limit, there are several other situations where filing a return becomes compulsory even if your income is low.
Contents
- 1 ITR Filing Mandatory Above Income Limit
- 2 High-Value Bank Deposits Above ₹1 Crore
- 3 Foreign Travel Expenses Above ₹2 Lakh
- 4 Electricity Bills Above ₹1 Lakh
- 5 High TDS or TCS Amount
- 6 Savings Account Deposits of ₹50 Lakh or More
- 7 Foreign Assets or Overseas Bank Accounts
- 8 Why Filing ITR Is Useful Even When Not Mandatory
ITR Filing Mandatory Above Income Limit
Generally, taxpayers must file an ITR if their annual income exceeds the basic exemption limit.
The exemption limit is:
₹4 lakh under the new tax regime
₹2.5 lakh under the old tax regime
However, certain high-value transactions and financial activities can also make ITR filing compulsory.
High-Value Bank Deposits Above ₹1 Crore
If a person deposits more than ₹1 crore in one or more current accounts during a financial year, filing an Income Tax Return becomes mandatory.
This rule helps the tax department track large financial transactions and ensure proper reporting.
Foreign Travel Expenses Above ₹2 Lakh
Individuals who spend more than ₹2 lakh on foreign travel during the financial year are required to file an ITR.
This includes expenses such as:
International flight tickets
Travel packages
Other eligible overseas travel expenses
The rule applies even if the person’s income is below the normal taxable limit.
Electricity Bills Above ₹1 Lakh
If your total electricity bill exceeds ₹1 lakh in a financial year, filing an ITR becomes compulsory.
This provision is aimed at identifying individuals with higher spending patterns, even if their reported income is lower.
High TDS or TCS Amount
ITR filing is also mandatory if the amount of Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) crosses a specified limit.
The limits are:
Individuals below 60 years: ₹25,000 or more TDS/TCS
Senior citizens aged 60 years or above: ₹50,000 or more TDS/TCS
Savings Account Deposits of ₹50 Lakh or More
If the total deposits in one or more savings bank accounts reach ₹50 lakh or above during a financial year, the person must file an ITR.
This rule applies regardless of whether the individual’s taxable income is below the exemption limit.
Foreign Assets or Overseas Bank Accounts
Resident Indians must also file an ITR if they:
Own any asset outside India.
Have financial interest in a foreign company or entity.
Have signing authority in an overseas bank account.
This requirement is part of India’s foreign asset reporting rules.
Why Filing ITR Is Useful Even When Not Mandatory
Even if filing an ITR is not compulsory, submitting a return can provide several benefits.
An ITR can help as:
Proof of income while applying for loans.
A useful document for visa applications.
A way to claim refunds for excess TDS.
A method to carry forward eligible losses to future years.
With the July 31 deadline approaching, taxpayers should check whether any of these conditions apply to them and complete their filing process on time to avoid last-minute issues.