Don’t have taxable income? You may still have to file ITR

Common belief is that ITR needs to be filed only if taxable income is more than exemption limit. There are many situations where income tax return needs to be filed even if taxable income is less than basic exemption limit. First, we need to understand what is gross total income and what’s taxable income. Gross total income is income from all sources before any deduction or exemption. Income computed after deductions and exemptions is considered as taxable income.

The latest basic exemption limit is ₹2.5 lakh.

Following are situations where ITR need to be filed even if taxable income less than basic exemption limit ….

1. If ‘total taxable income’ < basic exemption limit and “gross total income” > basic exemption limit, then ITR
needs to be filed.
2. If TDS is already done , to get refund of same…. ITR needs to be filed.
3. To apply for loan, visa etc, ITR is required.
4. If one incurs the expenses aggregating ₹ 1 lakh or more towards consumption of electricity1, return should be
filed.
5. If one has spent `₹ 2 lakh or more’ on foreign travel for himself or any other person, ITR needs to be filed.
6. If holds any asset, including financial one outside india, please get your ITR filed.
7. If one is beneficiary of any asset outside in india, please file your ITR.
8. If one has claimed relief under tax treaty like DTAA, go ahead and file ITR.

If You are in any of the above categories, get your ITR filed as early as possible before 31st December 2019.