Filing Income Tax Return Due to Specific Conditions

If your taxable income exceeds the basic exemption limit, you are required to file an income tax return in India. Additionally, fulfilling specific conditions under the Seventh Proviso to section 139(1) of the Income Tax Act, 1961 mandates filing a return, regardless of income level.

Conditions for Filing Income Tax Return

The Income Tax Act specifies conditions under which individuals must file an income tax return, even if their income is below the basic exemption limit:

• Expenditure exceeding ₹ 2 lakhs for travel to a foreign country for yourself or another person.
• Expenditure exceeding ₹ 1 lakh on consumption of electricity during the previous year.

These conditions trigger the obligation to file an income tax return in India.

Specific Expenditures and Filing Requirements

If you have incurred either of the following expenditures during the financial year, you are required to file an income tax return:

• Travel Expenditure: Expenditure exceeding ₹ 2 lakhs for travel to a foreign country for yourself or another person.
• Electricity Consumption: Expenditure exceeding ₹ 1 lakh on consumption of electricity during the previous year.

Other Conditions

Under clause (iv) of the Seventh Proviso to section 139(1), there are additional conditions that may require you to file an income tax return. These conditions typically involve:

• Ownership of assets located outside India.
• Being a signing authority in any account located outside India.

Consult a tax advisor to determine if these conditions apply to your situation.

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