Last Updated:June 20, 2025, 19:21 IST
According to the Income Tax Act of India, people should file an ITR if their annual income surpasses the basic exemption limit.
An ITR details your earnings and tax obligations for a specific year. (Representative Image)
Most people look forward to receiving the “salary credited” message on their phones, but it also involves the trouble of filing taxes. The entire process may seem overwhelming due to the Income Tax Act’s intricacies and compliance requirements. However, is filing an Income Tax Return (ITR) mandatory for everyone? The answer is: The taxpayer must file an ITR if they exceed the Basic Exemption Limit, which is Rs 2.5 lakhs for the old tax system and Rs 3 lakhs for the new one.
An income tax return, or ITR, is a document you file with the government that details your earnings and tax obligations for a specific year. The assessee’s total income, expenses, assets, and tax due are all detailed in this statement.
In addition to exceeding the aforementioned threshold limit, there are additional requirements that must be met for an individual to be required to file an ITR, even if they do not exceed the threshold limit.
In India, individuals who meet any of the following requirements must file an income tax return:
Regardless of whether they owe taxes or not, anyone whose annual income exceeds the basic exemption limit or the tax-free limit is required to file an ITR.
You must file an ITR to claim a reimbursement. The refund process will only begin after the assessee has provided the tax return.
Every company should file a tax return detailing its income or loss, regardless of its annual profit or loss. Only after the assessee has submitted the ITR can any losses be carried forward.
Anyone with foreign assets or income must file an ITR, providing the necessary facts about their holdings and income.
Assessees are entitled to carry forward losses and offset them with future gains under the Income Tax Act. However, filing an ITR revealing such losses is required for one to claim this benefit.
A tax return must be filed by every assessee who has deposited Rs 50 lakh in one or more savings accounts.
A tax return must be filed by any assessee who has deposited at least Rs 1 crore into one or more current accounts. However, deposits placed into post office current accounts are exempt from this rule.
An ITR must be filed by an assessee who spent more than Rs 2 lakhs on international travel during the year.
If you have more than Rs 25,000 in taxes withheld in the form of TDS or TCS. This maximum is Rs 50,000 for elderly citizens (those above 60).
An ITR must be filed by an assessee whose electrical expenses exceed Rs 1 lakh.
You will be penalised Rs 5,000 if you fail to file your ITR before September 15, 2025. However, the penalty is lowered to Rs 1,000 if your income is less than Rs 5 lakhs.
An authorised signatory to an account managed outside of India does not exempt you from filing an income tax return, irrespective of whether your assets outside of India are either immovable or movable. For instance, you have to file an ITR if you opened an account overseas and neglected to close it when you returned to India.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
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Delhi, India, India
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