Who Should File Income Tax Return (ITR) for FY 2024-25 (AY 2025-26)
When it comes to taxes, many individuals are unsure whether they even need to file an Income Tax Return (ITR). While not everyone is obligated to file, understanding your tax requirements is essential for financial compliance. Filing your ITR is not just about compliance; it can also unlock benefits such as faster loan approvals, visa applications, and tax refunds.
Here's a simple breakdown to help you understand who must file an ITR for the current financial year:
Mandatory ITR Filing – Who Needs to File?
1. If your total income exceeds the basic exemption limit:
| Age Category | Income Threshold |
|---|---|
| Below 60 years | ₹2.5 Lakhs |
| Senior Citizens (60-80 yrs) | ₹3.0 Lakhs |
| Super Senior Citizens (80+) | ₹5.0 Lakhs |
2. Other Scenarios That Require ITR Filing:
Even if your income is below the threshold, you're still required to file an ITR if:
- You want to claim a tax refund.
- You have foreign assets or income.
- You've deposited over ₹1 crore in one or more current accounts.
- You've spent:
- Over ₹2 lakh on foreign travel, or
- Over ₹1 lakh on electricity bills
- You're earning income from properties outside India.
- Your electricity bill exceeds ₹1 lakh.
- Your professional receipts exceed ₹10 lakh.
- Your TDS/TCS exceeds ₹25,000 in a year (₹50,000 for senior citizens).
The government has made this mandatory under notification to increase transparency.
NRIs – Do You Need to File?
If you are a Non-Resident Indian (NRI) and your income in India exceeds ₹2.5 lakh (including capital gains), you're required to file ITR—regardless of your residential status.
NRIs with income sources or owned property inside India, this rule is not just mandatory—it's also beneficial for claiming refunds and avoiding legal penalties.
Why Should You File ITR?
Even if it's not compulsory, here's why filing is still a smart move:
- Proof of income for loan applications.
- Essential for visa applications.
- Let's you carry forward capital losses.
- Establishes financial credibility.
Penalties for Missing the Deadline
Missed the due date (typically 31st July)?
If your income is:
- Below ₹5 lakh: Penalty up to ₹1,000
- Above ₹5 lakh: Penalty up to ₹5,000
Final Thoughts
Filing your ITR is more than just a legal requirement—it's a strategic financial decision. Whether you're a salaried professional, self-employed, or an NRI, timely ITR filing gives you a financial edge.
TaxSimply is here to simplify the process. Whether you're unsure about your filing status or want an expert to handle your taxes end-to-end, we've got you covered.
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