Even as the ITR filing deadline for AY 2026-27 approaches fast, taxpayers are filing their income tax returns aggressively. Over 3 crore ITRs have been filed so far for the assessment year 2026-27, with
more than 15 lakh returns filed on July 21 alone. The July 31 deadline applies to those who must file ITR-1 and ITR-2. Apart from income levels, know other conditions that make it mandatory for taxpayers to file ITR:
“3 Crore + ITRs have already been filed for A.Y 2026-27, with 15 Lakh+ ITRs filed yesterday alone! Don’t wait for the deadline rush! File your ITR 1 & 2 for A.Y 2026-27 before July 31, 2026 at http://incometax.gov.in,” said Income Tax India in a post on X on Wednesday, July 22.
Generally, filing ITR is mandatory if your an annual income exceeds income tax exemption limit — Rs 4 lakh under the new tax regime and Rs 2.5 lakh under the old regime.
When Is ITR Filing Mandatory Despite Low Income?
The Income Tax Act, 1961, requires individuals to file an ITR if they meet any of the specified conditions notified under Section 139(1), even when their total income is below the basic exemption limit.
Deposits Above Rs 1 Crore In Current Accounts
ITR filing is mandatory if an individual has deposited more than Rs 1 crore in one or more current accounts maintained with a bank or a co-operative bank during the financial year. This provision is aimed at bringing high-value banking transactions within the tax reporting framework.
Foreign Travel Expenses Exceed Rs 2 Lakh
An individual must file an ITR if they have spent more than Rs 2 lakh on foreign travel for themselves or any other person during the financial year. The expenditure may include travel packages, air tickets and other eligible overseas travel expenses as prescribed under the rules.
Electricity Bill Above Rs 1 Lakh
If a person’s annual electricity consumption results in bills exceeding Rs 1 lakh during the financial year, filing an Income Tax Return becomes compulsory, irrespective of total income. The provision is intended to identify individuals with significant spending patterns.
TDS Or TCS Above Prescribed Limits
ITR filing is also mandatory in cases where tax has been deducted or collected beyond specified thresholds during the financial year. For individuals below the age of 60 years, an ITR must be filed if the aggregate Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) is Rs 25,000 or more during the financial year. For senior citizens aged 60 years or above, the threshold is Rs 50,000.
Large Savings Bank Deposits
Individuals whose aggregate deposits in one or more savings bank accounts are Rs 50 lakh or more during the financial year are also required to file an Income Tax Return, irrespective of their taxable income.
Foreign Assets Or Signing Authority
Resident individuals who hold any asset outside India, have a financial interest in a foreign entity, or possess signing authority in any overseas bank account are generally required to file an Income Tax Return even if their income is below the taxable limit. This disclosure requirement forms part of India’s foreign asset reporting framework.
Why Filing An ITR Can Still Be Beneficial
Even where filing is not legally mandatory, submitting an Income Tax Return offers several benefits. It serves as proof of income while applying for home, personal or vehicle loans, helps in obtaining visas, enables taxpayers to claim refunds of excess TDS, and allows eligible taxpayers to carry forward certain losses to future years.
