The deadline for filing Income Tax Return (ITR) for Assessment Year 2026-27 is approaching, and taxpayers are filing returns at a fast pace.
According to the Income Tax Department, more than 3 crore ITRs have already been filed, with over 15 lakh returns submitted on July 21 alone.
The last date for filing ITR-1 and ITR-2 is July 31, 2026.
Taxpayers are advised not to wait until the last moment to avoid technical issues or last-minute rush.
While many people believe ITR filing is required only when income crosses the exemption limit, there are several other situations where filing a return is compulsory.
Income Limit for Mandatory ITR Filing
Generally, individuals need to file an ITR if their 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, even if your income is below these limits, you may still need to file an ITR if you meet certain conditions under Section 139(1) of the Income Tax Act, 1961.
High-Value Transactions That Require ITR Filing
Depositing More Than ₹1 Crore in Current Accounts
If a person deposits more than ₹1 crore in one or more current bank accounts during a financial year, filing an ITR becomes mandatory.
This rule helps the tax department track high-value financial transactions.
Foreign Travel Expenses Above ₹2 Lakh
People who spend more than ₹2 lakh on foreign travel for themselves or another person during the financial year must file an ITR.
This includes expenses such as international flight tickets, travel packages, and other eligible overseas travel costs.
Electricity Bills Above ₹1 Lakh
If a person’s total electricity bill exceeds ₹1 lakh in a financial year, they must file an income tax return, even if their income is below the taxable limit.
Other Conditions Where ITR Filing Is Compulsory
High TDS or TCS Amount
ITR filing is mandatory if the total Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) crosses the prescribed limit.
The limits are:
₹25,000 or more for individuals below 60 years of age.
₹50,000 or more for senior citizens aged 60 years or above.
Savings Bank Deposits of ₹50 Lakh or More
Individuals who deposit a total of ₹50 lakh or more in one or more savings bank accounts during a financial year must file an ITR.
Foreign Assets or Overseas Financial Interest
Resident Indians must 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 applies even if their income is below the normal taxable limit.
Why Filing ITR Is Beneficial Even If Not Mandatory
Filing an income tax return can be useful even when it is not compulsory.
An ITR acts as an official proof of income and can help with:
Applying for home, personal, or vehicle loans.
Visa applications.
Claiming refunds for excess TDS.
Carrying forward eligible losses to future years.
With the July 31 deadline approaching, taxpayers should check whether they fall under mandatory filing rules and complete their ITR submission on time.
