When is income tax applicable?

Income tax is applicable when an individual's total annual income exceeds the basic exemption limit set by the Government of India. For the Assessment Year 2026-27, the primary applicability criteria are:

• New Tax Regime: Income exceeding ₹4,00,000 is generally taxable for individuals.
• Old Tax Regime: Income exceeding ₹2,50,000 for individuals below 60 years, ₹3,00,000 for senior citizens, and ₹5,00,000 for super senior citizens.

Additionally, filing is mandatory if specific conditions are met, such as electricity bills exceeding ₹1 lakh or foreign travel expenses over ₹2 lakh in a year.