22/08/2025
Who is mandatorily required to file an income tax return in India?
Several categories of individuals and entities in India are mandatorily required to file Income Tax Returns (ITR), according to the Income Tax Act of 1961.
Individuals and HUFs
Income exceeding the basic exemption limit
This is the most common criterion. The basic exemption limit depends on the individual's age and the tax regime they choose (old or new).
Under the old tax regime:
Below 60 years of age: income exceeding ₹2.5 lakh.
Between 60 and 80 years of age (senior citizens): income exceeding ₹3 lakh.
Above 80 years of age (super senior citizens): income exceeding ₹5 lakh.
Under the new tax regime:
For all individuals, the basic exemption limit is ₹3 lakh for FY 2024-25. It's important to note this has increased to ₹4 lakh for FY 2025-26.
Specific financial activities or expenditures
Even if an individual's income is below the exemption limit, filing an ITR is mandatory in certain situations, including:
Depositing over ₹50 lakh in one or more savings bank accounts.
Depositing over ₹1 crore in one or more current accounts.
Spending more than ₹2 lakh on foreign travel (for self or others).
Paying an electricity bill exceeding ₹1 lakh.
Having TDS/TCS of ₹25,000 or more (₹50,000 for senior citizens).
Having foreign assets or being a beneficiary or authorized signatory for a foreign account.
Business turnover exceeding ₹60 lakh.
Professional income exceeding ₹10 lakh.
Companies and firms
All companies and firms, including private and public limited companies and Limited Liability Partnerships (LLPs), regardless of whether they make a profit or incur a loss during the financial year, are required to file ITRs.
Non-Resident Indians (NRIs)
NRIs earning income in India are obligated to file ITRs if their income exceeds the basic exemption limits, which are the same as those for resident individuals (₹2.5 lakh under the old regime or ₹3 lakh under the new regime for FY 2024-25, increasing to ₹4 lakh for FY 2025-26).
However, NRIs with long-term or short-term capital gains are not eligible for the basic exemption limit, making ITR filing compulsory even if their capital gains fall below this threshold.
Trusts and other organizations
Charitable or religious trusts and institutions, political parties, universities, colleges, and similar organizations whose income exceeds the basic exemption limit are also required to file ITRs using Form ITR-7. They may need to get their accounts audited depending on their income and legal structure.
Important considerations
Claiming Refunds: Even if your income is below the exemption limit, you may need to file an ITR to claim a refund of excess tax paid or TDS deducted.
Carrying Forward Losses: To carry forward business or capital losses to offset against future income, filing an ITR is necessary within the due date.
Loan and Visa Applications: ITRs are often required as proof of income for applying for loans, visas, and other financial transactions.
Penalties: Failure to file an ITR by the due date may lead to penalties and interest charges.
Due Dates: The general due date for filing ITR for non-audit taxpayers for FY 2024-25 has been extended to September 15, 2025.
However, businesses requiring an audit have a deadline of October 31, 2025, or November 30, 2025, if transfer pricing reports are involved.
Feel free to get in touch for any clarification on the above at 074066 74694 or 9336154968
- Ankit Modi
