ITR Filing 2025: Understanding India’s Minimum Income Requirement

Image Source : India Briefing

As the Income Tax Return (ITR) filing season begins, many taxpayers wonder whether they need to file an ITR if their income falls below the taxable limit. According to Indian tax laws, filing an ITR is mandatory only if an individual’s income exceeds the basic exemption limit, which varies based on the tax regime chosen.

Minimum Income Thresholds for ITR Filing
- Under the old tax regime, the exemption limit is set at 2.5 lakh rupees for individuals below 60 years, 3 lakh rupees for senior citizens (60-80 years), and 5 lakh rupees for super senior citizens (above 80 years)
- The new tax regime has a uniform exemption limit of 3 lakh rupees for all individuals, but the Union Budget 2025 has raised this limit to 4 lakh rupees under revised tax slabs

Situations Where ITR Filing Is Mandatory Despite Low Income
- Deposits exceeding 50 lakh rupees in a savings account or 1 crore rupees in a current account
- Annual turnover surpassing 60 lakh rupees for businesses
- Professional income exceeding 10 lakh rupees
- Electricity bill payments totaling over 1 lakh rupees in a year
- Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) deductions of 25,000 rupees or more (50,000 rupees for senior citizens)
- Ownership or beneficiary status in foreign assets or accounts
- Spending over 2 lakh rupees on foreign travel

Why Filing ITR Can Be Beneficial Even If Not Mandatory
- Claiming TDS refunds
- Carrying forward capital losses for future tax benefits
- Facilitating loan or visa applications, where income proof is required
- Establishing financial credibility for future investments

Future Outlook and Taxpayer Considerations
- The government continues to refine tax policies to encourage compliance and streamline the filing process
- Experts recommend filing ITR even when not legally required, as it helps maintain financial records and unlocks various benefits
- Taxpayers should stay updated on changes in tax laws to ensure smooth filing and avoid penalties

Source : NDTV, Financial Express, MSN News