ITR Filing FY2024-25: One of the most common questions that arises during the ITR filing season every year is: Does my income level make me eligible to file an income tax return? What do the income tax laws say about this?
According to the income tax laws of India, any Indian citizen is required to file an ITR only if their taxable income is above the basic exemption limit. If your income is below this threshold, filing an ITR is not mandatory.
However, this exemption limit depends on the tax regime chosen (old or new):
In the old tax system, this limit is Rs 2,50,000.
In the new tax system, this limit has been kept at Rs 3,00,000 (for AY 2025-26).
Taxpayers must remember that the Union Budget 2025 has increased the basic tax exemption limit to Rs 4 lakh under the new tax regime after changes in the tax slabs.
There are, however, many cases when it becomes necessary to file ITR even if the income is less than the exemption limit. These situations are as follows:
- Deposit of more than Rs 50 lakh in savings account
If you have deposited a total of Rs 50 lakh or more in one or more of your savings accounts in the last financial year, then you will have to file ITR.
- Deposit of Rs 1 crore or more in current account
If you have deposited a total of Rs 1 crore or more in one or more current accounts, then it is mandatory to file ITR. However, this rule does not apply to businesses.
- Annual sales more than Rs 60 lakh
If your total annual sales or gross receipts are more than Rs 60 lakh, then you must file ITR.
- Professional income more than Rs 10 lakh
If you are associated with any profession and your professional income is more than Rs 10 lakh, then you will have to file ITR.
- Electricity bill of more than Rs 1 lakh
If you have paid more than Rs 1 lakh in any one electricity bill or in total in the whole year, then it is necessary to file ITR.
- TDS/TCS more than Rs 25,000
If TDS (Tax Deducted at Source) or TCS (Tax Collected at Source) of Rs 25,000 or more has been deducted on you, then it is necessary to file ITR. For senior citizens this limit is Rs 50,000.
- Income or rights from foreign assets
If you have any foreign property, or you are a beneficiary of any foreign property, or you have signing authority in a foreign bank account, then it is mandatory to file ITR.
- Expenses of more than Rs 2 lakh on foreign travel
If you have spent more than Rs 2 lakh on yourself or someone else during a foreign trip, then you have to file ITR.
Also read: ITR hacks for senior citizens: Don’t miss THESE tax benefits available for pensioners in 2025
What should be the minimum income to file ITR?
The requirement of ITR filing depends on the age of the individual and the tax regime:
Old tax regime:
Age less than 60 years: Rs 2.5 lakh
Senior citizens between 60 and 80 years: Rs 3 lakh
Super senior citizens above 80 years: Rs 5 lakh
New tax regime:
The limit is Rs 3 lakh for individuals of all ages.
What to understand in the end?
Even if your income is below the exemption limit, filing ITR can be beneficial in many cases. For example:
-Getting TDS refund
-Being able to carry forward capital loss
-Facility in taking loan — Banks or financial institutions may ask for a copy of ITR
-Therefore, filing ITR is not just a legal process but also a financially sensible step.