Who needs to file income tax return (ITR) in India for FY 2023-24
basic exemption limit.
Suresh Surana, practising chartered accountant, says, «Section 139 mandates that ITR filing is mandatory (for individuals) in certain situations even if their total income in a financial year is below the basic exemption limit. If the ITR is not filed by the deadline of July 31, then a penalty will apply to these taxpayers.»
Also Read: Last date to file ITR for different taxpayers
Here are the situations where ITR filing is mandatory even if the total taxable income is below the basic exemption limit.
1. Holding foreign assets or having foreign income: Many resident individuals invest in shares of foreign companies. Consequently, they may receive dividends from these foreign shares. According to Section 139(1) of the Income-tax Act, ITR filing is mandatory if a resident individual owns assets such as shares, bonds of foreign companies; a house in foreign countries; or has income such as dividends, interest or rent from foreign countries. ITR filing is mandatory even if a person has signing authority in any account outside India.
Surana says, «There may be cases where an individual invests his money in foreign assets in his parent's name as the parent's income is below the basic exemption limit. In such cases also ITR filing is mandatory for the parent.»
2. Spending Rs 2 lakh and above for foreign travel: ITR filing is mandatory if a resident individual has spent Rs 2 lakh or more (at one go or in aggregate in a financial year) on himself/herself or any other person travelling to a
