Is it compulsory to file iTR

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Even if your income isn't taxable, you might still need to file an Income Tax Return (ITR) from Assessment Year 2020-21. This is due to amendments introduced by the Union Budget 2019. You are required to file if you meet specific conditions, such as depositing over £1 crore in current accounts, spending over £2 lakh on foreign travel, or incurring over £1 lakh on electricity consumption. These requirements are detailed in the seventh proviso to Section 139(1) of the Income Tax Act, 1961.

Nikhil Sharma

Nikhil Sharma (Querist)
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12 August 2020 Dear Experts,
From AY 2020-21 is it compulsory to file ITR even if income is not chargeable to Tax,

If yes pls let me know relevant section/Rule thereof,

Thanks
Nikhil

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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12 August 2020 Yes.
The government has amended the income-tax law vide the Union budget 2019 to introduce further conditions for filing tax returns by individual taxpayers whose gross total income is below the basic exemption limit. This condition is applicable from fiscal year 2019-20 onwards and individuals would be required to file a tax return in India if they meet any of the conditions mentioned below during the financial year:

•deposit an aggregate amount of `1 crore or more in current account(s) maintained with a banking company or a co-operative bank;

•spend `2 lakh or more on foreign travel for himself or any other person;

•incur an expense aggregating `1 lakh or more towards consumption of electricity; or

•fulfil any other conditions as may be prescribed.

Nikhil Sharma

Nikhil Sharma (Querist)
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13 August 2020 Sir! Kindly let me know the section/clause in finance Act. 2019