SHORT ANSWER:
Students need to file Income Tax Returns (ITR) if their income exceeds the basic exemption limit.
DETAILS:
- The basic exemption limit for individuals below 60 years is ₹2.5 lakh per annum.
- If a student's income is below this limit, filing ITR is not mandatory but can be beneficial for future loans or scholarships.
PUNISHMENT / IMPLICATIONS (if applicable):
- Failure to file ITR when income exceeds the limit may lead to penalties.
SOURCE:
- Income Tax Act, 1961
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