4. The gross total income before deduction under section. 80C of 'X' a resident individual, aged 64 years is Rs.3,20,000/- and total income after deduction under sec 80C is Rs.2,85,000. Is it necessary for him to submit his return of income voluntarily?

1. Facts of the Case

Mr. ‘X’ is a resident individual aged 64 years during the financial year.
His Gross Total Income (GTI) before claiming deductions under Section 80C is Rs. 3,20,000/-.
He has claimed deductions under Section 80C amounting to Rs. 35,000/-, reducing his Total Income to Rs. 2,85,000/-.
The query is whether he is mandated to file his Income Tax Return (ITR) for the relevant assessment year, or if it can be voluntarily submitted.

Is Mr. X required to file his Income Tax Return (ITR) mandatorily under the Income Tax Act, 1961?
Does the threshold exemption limit applicable to a senior citizen apply in his case?
Does the fact that his total income falls below the taxable limit (after deductions) exempt him from filing the return?
Under what circumstances would filing the ITR voluntarily still be advisable or beneficial?

This section mandates every person to file a return of income if their gross total income before deductions under Chapter VI-A (such as Section 80C) exceeds the basic exemption limit applicable to them.

For the relevant financial year (assumed FY 2024-25), the basic exemption limit for a resident individual aged 60 years or more but less than 80 years is Rs. 3,00,000/-.

The requirement to file an income tax return is based on the gross total income before allowing any deductions under Chapter VI-A (which includes deductions under Section 80C).

An individual whose gross total income is below the prescribed exemption limit is not mandatorily required to file a return.
However, a return may still be filed voluntarily, which could be beneficial in certain circumstances (e.g., applying for a visa, availing loan, carrying forward losses, etc.).

Since Mr. X is a resident senior citizen (aged 64) and his gross total income before deductions is Rs. 3,20,000, which is above the basic exemption limit of Rs. 3,00,000, he is required to file his Income Tax Return under Section 139(1).
The fact that his income falls to Rs. 2,85,000/- after claiming deduction under Section 80C does not exempt him from filing the return, because the threshold test applies before deductions.