ITR filing mandatory while income is 0

As Per Section 139 (1) (b) : being a person other than a company or a firm, if his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which is not chargeable to income-tax, shall, on or before the due date, furnish a return of his income or the income of such other person during the previous year, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed 

That means a person (other than a company or firm) has to file Income Tax Return when his income exceed the basic exemption limit (which is Rs.250000 for normal person, Rs.300000 for senior citizen and Rs.500000 for super senior citizens)

But below are some instances in which individuals are liable to file their Income Tax Returns even when their income is below exemption limit of Rs.2.5 Lakhs

Refer Proviso to section 139:

1. Business Turnover/Sale – more than Rs 60 lakhs: If an individual’s annual total Turnover/Sale of business exceed Rs. 60 lakhs, they are required to file an income tax return.
2. Professional Receipts – more than Rs 10 Lakh: Individuals must file an ITR if their professional gross Receipts for the preceding year exceeds Rs 10 lakh.
3. TDS/TCS amount Rs 25,000 or more: A tax return is mandatory if the total TDS (Tax Deducted at Source) or TCS (Tax Collected at Source) amounts to Rs 25,000 or higher. For senior citizens, this limit is Rs 50,000.
4. Saving account Deposits – more than Rs 50 Lakhs: If an individual has deposited an amount of Rs 50 lakh or more in one or more savings accounts during the previous year, they must file an income tax return.
5. Current account Deposits – more than Rs 1 Crore: Individuals need to file an ITR if they have deposited an amount or aggregate of amounts exceeding Rs. 1 crore in one or more current accounts maintained with a bank or co-operative bank.
6. Foreign Travel Expenditure – more than 2 Lakhs: If an individual has spent an amount or aggregate of amounts exceeding Rs. 2 lakhs for themselves or any other person to travel to a foreign country, they are required to file an income tax return.
7. Electricity bill exceeding Rs. 1 lakh: Individuals need to file their tax returns if they have paid an electricity bill exceeding Rs. 1 lakh in a single bill or on an aggregate basis during the previous financial year.

Tip:

In case of Sale of Resident Property and Reinvestment in New Property: Individuals must file their Tax Returns to claim deductions under section 54 when they sell resident property and reinvest in a new property of higher value.

A person, being a resident (other than not ordinarily resident in India )within the meaning of clause (6) of section 6, who is not required to furnish a return under this sub-section and who at any time during the previous year,—

 (a) holds, as a beneficial owner or otherwise, any asset (including any financial interest in any entity) located outside India or has signing authority in any account located outside India; or

 (b) is a beneficiary of any asset (including any financial interest in any entity) located outside India,

shall furnish, on or before the due date, a return in respect of his income or loss for the previous year in such form and verified in such manner and setting forth such other particulars as may be prescribed:

But above shall ot apply to an individual, being a beneficiary of any asset (including any financial interest in any entity) located outside India where, income, if any, arising from such asset is includible in the income of the person referred to in (a) above.

In these cases, individuals are required to file their income tax returns even if their total income is below the taxable limit of Rs. 2.5 lakhs. Filing returns in these situations is necessary to comply with the Income Tax Act and avoid any potential penalties or legal issues.

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