Income Tax Return (ITR) is a form that a person must submit to the Income Tax Department of India. It shows information about a person’s income and the taxes to be paid during the year. The ITR contains details of income earned from April 1st of one year to March 31st of the next year, which is called the financial year. Income can come from different sources like salary, business profits, house property, capital gains, or other sources such as dividends, interest, lottery winnings, and royalty income.

Many people get confused about whether they need to file an ITR if their income is below the taxable limit. According to Indian tax laws, filing ITR is required only if the income is more than the basic exemption limit. This limit depends on the tax regime you follow, which can be old or new.

Minimum income limits to file ITR

Under the old tax regime, the minimum income limits are:

  • Below 60 years: Rs 2.5 lakh
  • 60-80 years (Senior citizens): Rs 3 lakh
  • Above 80 years (Super senior citizens): Rs 5 lakh

Under the new tax regime, the exemption limit is Rs 3 lakh for all individuals. However, the Union Budget 2025 has raised this limit to Rs 4 lakh under the revised new regime tax slabs.

Even if your income is below these limits, you may still need to file an ITR in some cases. For example, if you have deposits over Rs 50 lakh in a savings account or Rs 1 crore in a current account, or if your business turnover is more than Rs 60 lakh. Other reasons include professional income over Rs 10 lakh, electricity bill payments over Rs 1 lakh, TDS or TCS deductions of Rs 25,000 or more (Rs 50,000 for seniors), owning foreign assets or accounts, or spending more than Rs 2 lakh on foreign travel.

Why filing ITR can help even if not mandatory

Filing an ITR can be useful even when it is not required by law. It helps in claiming TDS refunds and carrying forward capital losses. Also, it is important for loan or visa applications where proof of income is needed. Filing an ITR helps to establish financial credibility, which can be useful for future financial planning.

You might also be interested in:  Terrorists should’ve been dealt with in 1947, Sardar Patel’s advice was ignored, says PM Modi