In terms of section 234F, certain individuals can file their ITR without paying a penalty if the gross total income does not exceed the basic exemption limit of Rs.2.50 lakhs even after the expiry of the deadline. The basic exemption limit of Rs.3 lakh for Senior Citizens of above 60 years and Rs.5 lakh for Super Senior Citizens of above 80 years remain unchanged under the old rule.
However, section 139(1) seventh proviso mandates the compulsory filing of income for certain individuals even though the income is below the exemption limit for such taxpayers. They are;
1. Total deposit in the current account in the bank/s is Rs.1 crore or more.
2. Foreign travel expenditure of Rs.2 lakh or more for himself or any other person for travel to a foreign country;
3. Amount spent for more than Rs 1 lakh on the consumption of electricity (whether the consumption expenditure for domestic or commercial usage or
4. Who full-fill such other conditions as may be prescribed by Income Tax department.
Further, if you hold foreign assets such as stocks of a foreign company or if you are an ordinarily resident individual with income from foreign assets, you need to mandatorily file an income tax return even in the case of your taxable income is below the threshold limit.
If you have failed to file ITR on or before the deadline for filing the return, then you will have to pay the penalty prescribed by the department.
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