Filing an Income Tax Return (ITR) is a legal responsibility and often a practical necessity. For the FY2024–25 (AY2025–26), you are required to file an ITR in the following situations:
1. If Your Total Income Exceeds the Basic Exemption Limit
You must file a return if your total income before claiming any deductions exceeds:
- ₹2.5 lakh, if you are below 60 years of age
- ₹3 lakh, if you are 60 years or more but below 80 years
- ₹5 lakh, if you are 80 years or older
2. If You Wish to Claim a Tax Refund
Even if your income is below the taxable limit, you must file an ITR to claim any refund for excess TDS or advance tax paid.
3. If You Have Foreign Assets or Income
ITR filing is mandatory if you have earned foreign income, held foreign bank accounts, or invested in foreign assets during the financial year—even if your total income is below the basic exemption limit.
4. For Visa or Loan Applications
Banks and embassies often require ITR proofs for processing loan or visa applications. Filing returns ensures a smoother approval process.
5. If You Are a Company or a Firm
All companies and firms must file ITR, regardless of whether they made a profit or incurred a loss.
6. To Carry Forward Losses
If you have incurred a loss under the head “capital gains” or “business/profession,” you must file your return within the due date to carry it forward to future years.
Mandatory ITR Filing Even with Lower Income
Even if your income is below the exemption limit, you are required to file an ITR if you meet any of the following conditions:
- You deposited ₹1 crore or more in one or more current accounts with a bank
- You deposited more than ₹50 lakh in one or more savings accounts
- You spent over ₹2 lakh on foreign travel for yourself or another person
- Your electricity expenses for the year exceeded ₹1 lakh
- TDS or TCS deducted during the year is more than ₹25,000 (₹50,000 for senior citizens)
- Your business turnover exceeded ₹60 lakh
- Your gross professional income exceeded ₹10 lakh
These conditions have been notified by the government under Notification No. 37/2022 dated 21st April 2022.
ITR Filing for NRIs
For Non-Resident Indians (NRIs), the basic exemption limit is ₹2.5 lakh—irrespective of age. Any income earned or accrued in India beyond this limit requires filing a return.
Further, NRIs cannot use the exemption limit to offset capital gains. Even if total income is below ₹2.5 lakh but includes long-term or short-term capital gains, ITR filing becomes mandatory.
Conclusion:
Filing your ITR on time is essential not just for compliance but also for financial planning. It enables you to claim refunds, carry forward losses, and build a clean financial record for future borrowing or international travel.