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Who is Required to File ITR for FY 2023-24? Conditions & Exceptions for ITR Filing

Updated on: 20 Jul, 2024 03:56 PM

While getting the ‘salary credited’ message is what most people await, it also comes with the hassle of filing taxes. The complexities and compliances of the Income Tax Act can make the entire process sound intimidating. But is it even mandatory for everyone to file an ITR? In this article, we decode the conditions for ITR filing, exemptions, due dates, and consequences of non-filing.

Who should file ITR for FY 2023-24?

Under the old regime, individuals below 60 years of age have to file an ITR if their income exceeds Rs.2.5 lakhs and individuals above 60 years of age have to file an ITR if their income is more than Rs.3 lakhs.

However, under the new regime, the basic exemption limit for individuals below the age of 60 years is Rs.3 lakhs.

Note: If you are filing ITR for FY 2023-24, the basic exemption limit under the new regime was Rs.2.5 lakhs. This limit was increased to Rs.3 lakhs in budget 2023, applicable for ITR filing in FY 2023-24.

Given below are the tax slab rates for FY 2023-24 under the old regime and the new regime.

For Individuals below 60 years of age -

Annual Taxable Income New Tax Regime Old Tax Regime
Up to Rs.2.5 lakh Exempt Exempt
Over Rs.2.5 lakh to Rs.3 lakh Exempt 5%
Over Rs.3 lakh to Rs. 5 lakh 5% 5%
Over Rs.5 lakh to Rs.6 lakh 5% 20%
Over Rs.6 lakh to Rs. 9 lakh 10% 20%
Over Rs.9 lakh to Rs.10 lakh 15% 20%
Over Rs.10 lakh to Rs.12 lakh 15% 30%
Over Rs.12 lakh to Rs.15 lakh 20% 30%
Above Rs.15 lakh 30% 30%

For Senior Citizens (60-80 years of age) -

Annual Taxable Income New Tax Regime Old Tax Regime
Up to Rs.3 lakh Exempt Exempt
Over Rs.3 lakh to Rs. 5 lakh 5% 5%
Over Rs.5 lakh to Rs.6 lakh 5% 20%
Over Rs.6 lakh to Rs. 9 lakh 10% 20%
Over Rs.9 lakh to Rs.10 lakh 15% 20%
Over Rs.10 lakh to Rs.12 lakh 15% 30%
Over Rs.12 lakh to Rs.15 lakh 20% 30%
Above Rs.15 lakh 30% 30%

For Super Senior Citizens (Aged > 80 years) -

Annual Taxable Income New Tax Regime Old Tax Regime
Up to Rs.3 lakh Exempt Exempt
Over Rs.3 lakh to Rs. 5 lakh 5% Exempt
Over Rs.5 lakh to Rs.6 lakh 5% 20%
Over Rs.9 lakh to Rs.10 lakh 15% 20%
Over Rs.6 lakh to Rs.9 lakh 10% 20%
Over Rs.10 lakh to Rs.12 lakh 15% 30%
Over Rs.12 lakh to Rs.15 lakh 20% 30%
Above Rs.15 lakh 30% 30%

What Happens if my Taxable Income is Less than the Basic Exemption Limit?

As per the Income Tax Act of India, individuals are required to file an ITR only if their annual income exceeds the basic exemption limit. However, there are certain conditions in which you might be required to file an ITR even if your income falls within the basic exemption limit. Given below is a list of such conditions -

  • Bank Deposits of more than 50 lakhs - If the annual savings bank deposit of an individual in one or more accounts exceeds Rs.50 lakhs, then, such individual must file ITR.
  • Current Account Deposits of more than Rs. 1 Crore - If an individual deposits Rs.1 crore or more in one or more current accounts during the financial year, then he/she must file an ITR.
  • Annual Sales Turnover above Rs.60 lakhs - Individuals having an annual sales turnover of more than Rs.60 lakh are required to file an ITR.
  • Professional income above Rs.10 lakh - If the professional income exceeds Rs.10 lakhs during a financial year, then he/she has to file an ITR.
  • Electricity Bill Exceeding Rs. 1 Lakh - If an individual’s electricity bill during the year exceeds Rs.1 lakhs, he/she is required to file an ITR.
  • TDS/TCS exceeding Rs.25,000 - If the TDS/TCS of a person is more than Rs.25,000, ITR filing is mandatory. However, this threshold is Rs.50,000 for senior citizens.
  • Income from foreign assets - If an individual has an asset in a foreign country or is a beneficiary of an asset in a foreign country, he/she must file an ITR.
  • Expenses on foreign travel - If an individual spends Rs.2 lakh or more on foreign travel for himself or for another person during the financial year, then such an individual has to file an ITR.
  • Resident taxpayers with overseas assets or signing authority - In India, if you're considered a resident for tax purposes and have any overseas assets or interests, filing an ITR becomes mandatory. This includes assets you directly own or those you benefit from as a beneficiary owner.

You need to file an Income Tax Return even if you are an authorized signatory for an account managed outside of India. The asset you hold outside of India may be movable or immovable. For example, if you went abroad, opened an account, and forgot to close it upon returning to India, you must file an ITR.


What are the Benefits of ITR Filing?

  • Easy Loan Approval - When applying for loans, banks often ask for your ITR as it acts as proof of your income. Therefore, filing an ITR makes it easier for you to get your loans approved.
  • Claiming Tax Refund - There can be instances where TDS might have been deducted from your income even if your income falls below the basic exemption limit or the TDS deducted exceeds your actual tax liability. In such cases, you can claim a tax refund while filing your ITR.
  • Acts as Income and Address Proof - Your Income tax Return acts as proof of your income and investment for various banks and financial institutions.
  • Quick Visa Processing - Most of the embassies require you to submit your income tax returns from the previous years while applying for a visa. Therefore, filing an ITR can actually help speed up your visa processing.
  • Carry Forward of Losses - The Income Tax Act allows individuals to carry forward their previous year's losses. These losses can be offset against the future income. However, this benefit is only available if you file your ITR within the prescribed timeline.
  • Helps Buying Term Insurance - Insurance providers often require individuals to submit their income tax returns as proof of their income. The total coverage amount is determined based on the individual’s earnings.
  • Claim Refund of Excess Tax Payments - If your income is below the threshold limit but TDS has been deducted from income such as fixed deposit, salary, or interest income. In such cases, you can claim a refund of the same while filing your ITR.
File ITR

Who is Exempted from ITR Filing in India?

Section 194P, which was introduced in Budget 2021, provides conditional relief to citizens above 75 years of age from filing income tax returns. However, this exemption is subject to the following conditions -

  • Senior citizens should be more than 75 years of age.
  • Senior citizens should be ‘Resident’ in India in the previous years.
  • He earns income from interest and pension only. The interest income earned should be from the same bank in which he/she is receiving pension income.
  • The senior citizen has to file a declaration stating some details with the specified bank.
  • The bank must be a specified bank as notified by the Central Bank. Such banks will deduct the TDS of senior citizens after considering the deductions and rebates. After such TDS deduction, senior citizens will not be required to file income tax returns.

What is the Last Date to File ITR for FY 2023-24?

The last date to file ITR is 31st July every year. However, if you miss the ITR filing due date, you can file a belated return before 31st December.

Therefore, the ITR filing deadline for FY 23-24 is 31st July 2024.

Particulars Due Date
ITR filing for individuals and entities not liable for tax audit 31st July 2024
ITR filing for taxpayers covered under the tax audit (other than transfer pricing cases) 31st Oct 2024
ITR filing for taxpayers covered under transfer pricing 30th Nov 2024
Due date for revised return/belated return of income for FY 2023-24 31st Dec 2024

Note: The last date to file ITR for FY 2023-24 is 31st July. Hurry up and file now to ensure a smooth ITR filing journey. Get CA-assisted ITR-filing services for accurate filing of ITR. Get CA Consultation Now!


What if I Fail to File my ITR?

If you fail to file an ITR by the due date, there can be various consequences. Given below is a list of the consequences.

ITR not Filed by 31st July 2024

  • Late filing fees of up to Rs 5,000 (for incomes above Rs 5 lakhs) or Rs 1,000 (for incomes below Rs 5 lakhs) may be levied under Section 234F for late filing.
  • As per section 234A, the taxpayer has to pay interest @1% for every month or part of the month thereof, starting from the date following the ITR filing due date, i.e. 31st July.
  • If you fail to file ITR on time, you will not be eligible to receive the benefit of carry forward of losses.
  • Non-filing of ITR can be seen as tax evasion by tax authorities, and you could face imprisonment for 6 months to 7 years.

Filing an Income Tax Return (ITR) can be challenging if you are new at taxes, but Tax2win is here to help. Our expert CA consultants provide CA-assisted ITR filing services, making it easy and convenient for you. Whether you need help with deductions, exemptions, or just understanding your taxable income, our online CA services ensure accurate and maximum tax refund. Book eCA Now!


Frequently Asked Questions

Q- What is the Basic Exemption Limit?

The basic exemption limit is the maximum amount of income on which income tax calculation is not applicable. In other words, it is the amount of annual income that is exempted from tax.


Q- What is exempted income?

Exempt income is any income that is exempt from taxation. The rules and regulations governing exempt income vary from country to country.


Q- Can I file ITR for FY 2023-24 now?

Taxpayers eligible to file ITR for FY 2023-24 can now file their ITR as the income tax department has opened ITR filing for 2023-24 online. It is important to note that the last date to file ITR for FY 2023-24 is 31st July 2024.


Q- Is it mandatory to file ITR for an annual income of Rs.4.25 lakhs?

Even if the tax liability is ‘0’, the annual income of Rs.4.25 lakhs is more than the basic exemption limit, i.e., Rs.2.5 lakh. Therefore, the individual has to file their ITR and report their income in it.


Q- What is my taxable income is more than basic exemption limit?

If your taxable income exceeds the basic exemption limit, you'll likely need to file an income tax return and potentially pay taxes on the amount exceeding the limit. The applicable tax rate depends on several factors, as detailed in this guide.


Q- Who should file ITR 2?

Unless you're a salaried individual with basic income sources and qualify for the simpler ITR-1 form, you'll likely need to file ITR-2. This applies to income from salaries, pensions, house properties (if you own more than one), capital gains or losses on investments, and other sources like lottery winnings. Even agricultural income exceeding Rs. 5,000 requires ITR-2. Residency status also plays a role - ITR-2 is for residents, non-residents, and residents but not ordinarily resident taxpayers. The key thing to remember is that business or professional income requires different ITR forms, and if your total income is above Rs. 50 lakh, ITR-2 becomes mandatory. When in doubt, consulting a tax professional can ensure you file the right form.


CA Abhishek Soni
CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.

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