Who is Not Required to File Income Tax Return? | Saptax Hub LLP
Filing an Income Tax Return (ITR) is an essential responsibility for most taxpayers in India. However, not everyone is required to file a return. The Income Tax Act, 1961, specifies certain exemptions based on income, age, and type of earnings. Let’s explore who is exempt from filing an ITR.
1. Individuals with Income Below the Basic Exemption Limit
If your total income before deductions (under Sections 80C to 80U) is below the basic exemption limit, you are not required to file an ITR. The current exemption limits under the new tax regime are:
- Below 60 years: ₹2.5 lakh
- Between 60-80 years (Senior Citizens): ₹3 lakh
- Above 80 years (Super Senior Citizens): ₹5 lakh
2. Individuals Earning Only from Agricultural Income
Agricultural income is fully exempt from income tax under Section 10(1) of the Income Tax Act. However, if you have other sources of income, you may need to file a return.
3. NRIs with No Taxable Income in India
Non-Resident Indians (NRIs) do not have to file an ITR if they earn only from foreign sources and have no taxable income in India.
4. Individuals with Only Certain Exempt Incomes
Some incomes are tax-free, and if they are your only source of earnings, you are not required to file an ITR. These include:
- Dividends from mutual funds (if below ₹10 lakh)
- Interest from the Public Provident Fund (PPF)
- Scholarships or certain awards
5. Salaried Individuals with TDS Already Deducted
If you are a salaried employee and your employer has deducted TDS (Tax Deducted at Source) appropriately, and your total income does not exceed the exemption limit, filing an ITR is not mandatory.
6. Individuals Who Do Not Meet the Specified Criteria for Mandatory Filing
According to Section 139(1), individuals must file an ITR if:
- They have foreign assets or income.
- They have deposited more than ₹1 crore in a bank account.
- Their electricity bill exceeds ₹1 lakh in a financial year.
- They have spent over ₹2 lakh on international travel.
Final Thoughts
Even if you are not required to file an ITR, it is always a good practice to do so, as it helps in financial planning, loan approvals, and visa applications.
If you need assistance with tax filing, consulting a professional can ensure compliance with the latest tax laws. Saptax Hub LLP, a leading CA firm in Delhi, provides expert tax consultation and filing services. Contact us today for hassle-free tax compliance!
