Key ITR Rules You Must Know

The Income Tax Department has advised taxpayers not to assume that filing an Income Tax Return (ITR) is unnecessary simply because their income falls below the basic exemption limit. For Assessment Year 2026–27, individuals earning up to ₹4 lakh under the new tax regime and ₹2.5 lakh under the old regime are generally exempt from filing an ITR. However, the department has clarified that several specified conditions make ITR filing mandatory even if the income is below the exemption threshold.

Mandatory ITR filing applies to individuals holding foreign assets or overseas bank account signing authority, making high-value cash deposits, spending more than ₹2 lakh on foreign travel, paying electricity bills exceeding ₹1 lakh, crossing prescribed business or professional income limits, or having TDS/TCS above the notified thresholds. Failure to comply may result in notices and penalties from the Income Tax Department. The last date for regular taxpayers to file ITR for AY 2026–27 is July 31, 2026.