Filing an Income Tax Return (ITR) in India is not just a legal formality – it helps establish financial credibility, unlocks refund claims, and supports visa, loan, and compliance needs.
Under the Income Tax Act, 1961, certain taxpayers are mandatorily required to file ITR every year.
This blog explains who must file ITR for FY 2024-25 (AY 2025-26) based on updated rules and notifications from the CBDT.
Legal Reference
- Section 139(1), Income Tax Act, 1961
- CBDT Circulars and Notifications
- Income Tax Rules, 1962
Who is Mandatorily Required to File ITR?
You must file ITR in India if you fall under any of the following categories:
- Your gross total income (before deductions) exceeds:
- ₹2.5 lakh if you are below 60 years
- ₹3 lakh if you are aged 60-79 (senior citizen)
- ₹5 lakh if you are aged 80 or above (super senior citizen)
- You are a company or partnership firm, regardless of profit or loss
- You want to claim a refund of excess TDS/TCS
- You have foreign income or own foreign assets, including signing authority over overseas bank accounts (Schedule FA)
- You have:
- Deposited ₹1 crore or more in one or more current accounts
- Spent ₹2 lakh or more on foreign travel
- Paid ₹1 lakh or more in electricity bills in a year
- Your TDS or TCS is ₹25,000 or more (₹50,000 for senior citizens)
Other Situations Where Filing is Recommended
- Even if not mandatory, you should file ITR in the following cases:
- You have capital losses and want to carry them forward
- You need to apply for a loan or visa
- You want to claim deductions under Sections 80C, 80D, 80G, etc.
- You have agricultural income exceeding ₹5,000 with other income
- You received income from crypto assets, NFTs, or digital assets
Examples
- Example 1: Ravi, a 32-year-old freelancer, earns ₹2.85 lakh in FY 2024-25
- Filing required as income exceeds exemption limit
- Example 2: Priya earns ₹2.3 lakh but has ₹30,000 TDS deducted
- Filing advised to claim refund
- Example 3: Ramesh has no income but deposited ₹1.2 crore in current account
- Filing mandatory under Section 139(1)
Conclusion
Filing an ITR is mandatory for certain income levels and transactions, but even voluntary filing brings long-term benefits like credit record building, ease of refunds, and clean compliance history. Avoid penalties by filing on time, even if you think you’re not required.
Call to Action and Disclaimer
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Disclaimer:
This blog post is intended for informational purposes only and should not be construed as legal or tax advice. Tax laws in India are subject to periodic amendments and judicial interpretations.
Frequently Asked Questions
1. What is the ITR filing deadline for FY 2024-25?
July 31, 2025 (unless extended by CBDT)
2. Can I file ITR voluntarily if my income is below the exemption limit?
Yes, and it is often advisable
3. What is the penalty for missing the ITR filing deadline?
₹1,000 to ₹5,000 under Section 234F, depending on income
4. Do salaried employees need to file ITR if TDS is already deducted?
Yes, if their income exceeds the exemption limit or they want a refund
5. Is ITR filing mandatory for cryptocurrency or NFT income?
Yes, digital asset income must be reported and taxed under Section 115BBH