For FY 2024-25 Process of filing income tax returns started Has been done The Income Tax Department has released ITR-1 and ITR-4 forms for the Assessment Year 2025-26, which are for those with annual income of up to ₹ 50 lakh. In such a situation, it is necessary for taxpayers to understand the important sections of the Income Tax Act, 1961 which help in getting tax exemption and correct tax calculation.
Section 139 (1): Mandatory to file ITR on earning more than fixed limit
Under section 139 (1), if an annual income of an individual or institution is more than the prescribed limit, it is mandatory for them to file income tax returns. This section also applies in cases where returns have to be voluntarily.
Section 10 (13A): HRA exemption on rented house
If a person lives in a rented house and pays more than ₹ 1 lakh rent annually, he can avail tax exemption on house rent allowance (HRA) under section 10 (13A). For this, it is necessary to follow some rules.
Also read: Taxpayers beware! Many rules changed in ITR-3, if you want to avoid delay, read now
Section 80C: Rebate up to ₹ 1.5 lakh on tax saving investment
For taxpayers adopting the old tax system, there is a discount of up to 1.5 lakhs on investments like PPF, EPF, ELSS, Tax Savings FD, and Life Insurance Premium under Section 80C. However, this exemption is not available in the new tax system.
In the new system only under section 80ccD (2), the contribution of the employer in NPS is up to 10%. In addition, certain expenses can be taken on certain expenses under Section 80JJAA and 80cch.
Section 80D: Rebate up to ₹ 1 lakh on health insurance
The benefit of tax exemption on the premium paid on health insurance is available under section 80D. If the taxpayers and his family members are under 60 years of age, then there is a discount of up to ₹ 25,000. This limit is ₹ 50,000 for the age of 60 years or older. There is a separate discount for parents, so that the total discount can reach ₹ 1 lakh.
Section 24B: A discount of up to ₹ 2 lakh on home loan interest
The interest given on the loan or home improvement loan taken for the house gives a discount of up to ₹ 2 lakh under section 24B. This exemption is available in both old and new tax systems.
Section 234F: ITR fined for late filling
If a person files ITR after a fixed deadline, he is fined under section 234F. For those less than ₹ 5 lakh, this fine is ₹ 1,000, while the penalty can be up to ₹ 5,000 for more than ₹ 5 lakh. In addition, interest may also have to be paid under section 234A and 234B.
Also read: CBDT released new ITR-5 form, changes in capital gains and TDS reporting; Learn immediately
Learn from experts for which people are required to file ITR? (Apply only to individual taxpayers)
According to tax expert Balwant Jain, under various provisions of the Income Tax Act, it becomes mandatory for individual taxpayers to fill ITR in certain conditions, even if their total income is not within the scope of tax liability. Let us know in which cases it is necessary to file ITR:
1. GDP is more than the basic exemption limit
If your Total income (Before the exemption received under Section 80C, 80D, 80G etc.) If ITR is more than the lower limit, it is mandatory to fill ITR:
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Normal person: ₹ 2.5 lakh
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Residents over 60 years of age: ₹ 3 lakh
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Residents over 80 years of age: ₹ 5 lakh
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Equal exemption for all in new tax system: ₹ 3 lakh
Long -term capital gains (LTCG) will also be added to it.
2. Property or Signature Authority abroad
If you in India Resident taxpayer Are and:
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Your name has any property abroad (even if there is no amount left)
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Foreign bank account or property is your share or signature authority
So it is mandatory for you to file ITR.
Example: Open bank account during jobs abroad, investment in foreign company’s eSops or mutual funds etc.
3. Special expenditure limit should be crossed
It is necessary to fill the return even if the limit is crossed on the following expenses:
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Electricity bills throughout the year: more than ₹ 1 lakh
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Foreign travel expenses (for anyone): more than ₹ 2 lakh
4. Large amount has been deposited in bank accounts
If your deposit zodiac signs are above the lower limits, it is necessary to file ITR:
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Current Account: Total deposits more than ₹ 1 crore
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Saving Account: Total deposit more than ₹ 50 lakh
Cash, check, draft or online transfer – all types of deposits will be included.
5. Business turnover or TDS exceeds range
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If you Business Are and turnover more than ₹ 60 million
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If you Professional Are more than ₹ 10 lakh
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If you have more than ₹ 25,000 (₹ 50,000 for senior citizens) in a year on you.
First Published – May 5, 2025 | 10:41 am IST
