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Filing Income Tax Returns (ITR) is not just mandatory for those with taxable income. The Income Tax Department of India has outlined specific financial transactions where filing ITR becomes compulsory—even if your income is below the basic exemption limit. These rules ensure transparency and keep a check on high-value financial activities.

If you have recently deposited large sums of money in your bank account, spent heavily on foreign travel, paid a hefty electricity bill, or had significant TDS/TCS deductions, you must file an ITR. Let’s break down the key scenarios where filing ITR is mandatory.

1. Foreign Travel Expenditure Above ₹2 Lakh

If you have spent ₹2 lakh or more on foreign travel during a financial year—whether for yourself or someone else—you are required to file an ITR.

This expenditure can be either in a single trip or accumulated over multiple trips. The ITR filing portal specifically asks: “Did you spend more than ₹2 lakh on foreign travel?” You must answer Yes/No, and if yes, provide the details of the amount spent.

2. Foreign Assets and Income Disclosure

Indian residents holding assets, income, or signing authority in foreign bank accounts must compulsorily file an ITR, regardless of income earned in India.

• Dividends from foreign shares are taxable.

• Income from foreign securities, property, or bank accounts must be disclosed.

• Such details are to be provided in Schedule FA (Foreign Assets) of the ITR form.

This rule ensures that individuals with overseas investments maintain compliance with Indian tax laws.

3. TDS or TCS Exceeding ₹25,000

If your Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) during a financial year amounts to ₹25,000 or more, then filing ITR is mandatory.

This provision is aimed at individuals with significant tax deductions or collections to ensure proper reporting of income.

Additionally, professionals whose gross receipts exceed ₹10 lakh annually from their practice are also required to file an ITR, even if their net taxable income is below the exemption limit.

4. Large Deposits in Bank Accounts

Another trigger for mandatory ITR filing is large cash deposits.

• Deposits of ₹1 crore or more in a current account, or

• Deposits of ₹50 lakh or more in a savings account during a financial year

require the individual to file an ITR.

This rule enables tax authorities to keep a close watch on high-value transactions and prevent misuse of banking channels for unreported income.

5. Electricity Bill Exceeding ₹1 Lakh

If your annual electricity bill is ₹1 lakh or more, you are required to file an ITR. The expenditure may be incurred in one go or in multiple installments throughout the year.

This condition helps the Income Tax Department track high-spending households and ensures that such expenses are matched with declared income.

Why These Rules Matter

The primary objective of these conditions is to bring more individuals under the tax compliance framework, especially those engaging in high-value transactions but not reporting corresponding income.

Filing an ITR in these cases does not necessarily mean paying additional taxes. In many instances, taxpayers may not owe extra tax, but filing the return provides transparency and prevents future scrutiny or penalties.

Final Takeaway

The ITR filing rules for 2025 make it clear that high-value transactions—whether through foreign travel, heavy utility bills, large bank deposits, or significant TDS deductions—cannot go unreported.

If you have engaged in any of the above activities in the past financial year, you must file your ITR, even if your income falls below the taxable threshold. Doing so will not only keep you compliant with tax laws but also help maintain a clean financial record for future credit, investments, or international travel.