Tax Query: What is the new criteria to file ITR if annual income is below taxable limit?

For the FY 2019-20, I incurred expenses on foreign travel for self and family on my credit card for an amount exceeding Rs 2 lakh. I have income from freelancing which is less than Rs 2.5 lakh on a net basis. Should I file an ITR for the AY 2020-21 (FY 2019-20)?

For the AY 2020-21, the new criteria require an individual whose annual income is below the taxable limit to file in the following situations:

1. Deposit, whether singly or in the aggregate, above Rs 1 crore in one or more current accounts during the financial year, with a bank or co-operative bank.
2. Incurred expenditure, singly or in the aggregate, above Rs 2 lakh on travelling to a foreign country for yourself or any other person.
3. Incurred expenditure, singly or in the aggregate, above Rs 1 lakh on electricity charges during the financial year.

In your case, you incurred expenditure on foreign travel for yourself and your family during FY 2019-20. Hence, you will need to file an ITR and report your income. 

Also Read: Tax Query: How is my EPF withdrawal taxed?

I have a loss of Rs 4 lakh from house property during the FY 2019-20. I have an income from salary of Rs 15 lakh against which I set-off a loss of Rs 2 lakh from house property. I have no tax payable or refund due. Can I carry forward the loss from house property if I do not file the ITR within the due date?

You can set-off a house property loss up to Rs 2 lakh against income from salary. You can carry forward the balance house property loss for eight succeeding years even if you do not file an ITR within the due date. In the absence of tax dues, you will not have any interest liability for a delayed filing of ITR. However, you need to pay a late filing fee of Rs 5,000 in case your total income is above Rs 5 lakh. In case you file on or after 1 January 2021 and until 31 March 2021, the late filing fee is Rs 10,000.

For any clarifications/feedback on the topic, please contact the writer at

sweta.dugar@cleartax.in

Sweta Dugar

I am a Chartered Accountant by profession. I specialise in personal taxes and corporate income tax matters. I am an avid reader and track developments in financial markets, economy and other market developments.