ITR Filing Rules 2026: Those earning less than Rs 4 lakh may also have to file ITR, know 6 important rules of Income Tax Department

Business Desk – ITR Filing Rules 2026: If you think that there is no need to file Income Tax Return (ITR) because the annual income is less than Rs 4 lakh, then this notion can land you in trouble. According to the rules of the Income Tax Department, there are many situations in which it becomes mandatory to file ITR even if the income is less than the basic tax exemption limit. Failure to do so may result in notice, penalty or other legal problems in future.

The last date for filing ITR without late fee for assessment year 2026-27 is 31 July 2026. According to the Income Tax Department, more than 3 crore taxpayers have filed their returns so far. In such a situation, if you have not filed ITR yet, then first know whether you are also included among those people for whom it is necessary to file ITR despite having low income.

What is the basic tax exemption limit?

Under the new tax system, income tax is generally not levied on annual income up to Rs 4 lakh, whereas in the old tax system this limit was Rs 2.5 lakh. But Section 139(1) of the Income Tax Act, 1961 also provides for certain cases in which it becomes mandatory to file ITR even if the income is less than this limit.

ITR will have to be filed even on low income in these 6 circumstances

1. Deposit of Rs 1 crore or more in current account

If you have deposited a total of Rs 1 crore or more in cash in one or more of your current accounts during the financial year, you will be required to file ITR, even if your income is below the tax exemption limit.

2. Spend more than Rs 2 lakh on foreign travel

If you have spent more than Rs 2 lakh on your or any other person’s foreign travel, such as air tickets, tour packages or other travel expenses, it is still mandatory to file ITR.

3. Electricity bill more than Rs 1 lakh

If you have received an electricity bill of more than Rs 1 lakh in your name in the entire financial year, then you will have to file an income tax return even if your income is low.

4. TDS or TCS deducted exceeds the prescribed limit

If your total TDS or TCS during the financial year is Rs 25 thousand or more, then it is necessary to file ITR. Whereas for senior citizens of 60 years of age or above, this limit has been fixed at Rs 50 thousand.

5. Deposit of Rs 50 lakh or more in savings account

If you have deposits totaling Rs 50 lakh or more in one or more savings accounts in a financial year, you will still have to file ITR.

6. Linkage to assets or bank accounts abroad

If you are a resident of India and have any property abroad, foreign financial investments or signing authority in a foreign bank account, it is mandatory to file ITR, irrespective of your income.

Big benefits of filing ITR even if you have low income

Even if you do not fall under these mandatory rules, filing ITR can still prove beneficial for you in many cases.

ease of getting loan

ITR is considered the strongest income proof while applying for home loan, car loan or personal loan. Those who file regular ITR find it easier to get loans from banks and financial institutions.

Help with visa application

ITR of last 2 to 3 years is asked for in visa application of many countries including US, UK and many European countries. In such a situation, regular ITR can make your foreign travel plans easier.

The only way to get TDS refund

If TDS has been deducted on your income and actual tax liability does not arise, it is necessary to file ITR to get the refund. Without filing the return you will not get TDS back.

Facility to adjust losses in future

If you have suffered a loss in the stock market, mutual funds or business, you can get the benefit of setting off that loss from future profits by filing ITR on time.

Don’t miss the deadline of 31st July

July 31, 2026 is the last date for filing ITR without late fees. Even if your income is below the tax exemption limit, it is important to check whether you fall under any of these six rules of the Income Tax Department. Filing ITR on time not only avoids legal troubles but also helps in getting loans, visas, tax refunds and future financial needs.