ITR Filing 2025: As per Indian tax laws, it becomes mandatory for you to file ITR if your annual income exceeds the prescribed basic exemption limit.
ITR Filing 2025: As the season of filing Income Tax Return (ITR) is approaching, a question is repeatedly arising in the minds of people that should I file ITR? If my annual income is less than the tax limit, should I still file ITR? Let us understand the answer to this question in simple language.
When is it necessary to file ITR?
According to Indian tax laws, if your annual income exceeds the prescribed basic exemption limit, then filing ITR becomes mandatory for you. This limit depends on whether you choose the old tax regime or the new tax regime.
Exemption limit under old tax regime
Age less than 60 years – Rs 2.5 lakh
60 to 80 years (senior citizen) – Rs 3 lakh
Above 80 years (super senior citizen) – Rs 5 lakh
Exemption limit under new tax regime
For all individuals – Rs 3 lakh
However, this limit has been increased to Rs 4 lakh in the budget for FY 2025.
When is it necessary to file ITR even if you have low income?
There are many situations when it becomes necessary to file ITR even if your income is less than the tax limit.
If you have deposited more than Rs 50 lakh in your savings account in a year
If you have deposited more than Rs 1 crore in your current account
If the annual turnover of the business is more than Rs 60 lakh
If the professional income is more than Rs 10 lakh
If the annual electricity bill is more than Rs 1 lakh
If TDS of Rs 25,000 or more (Rs 50,000 for senior citizens) has been deducted on you
If you have foreign assets, accounts or stake in a foreign financial account
If you have traveled abroad for more than Rs 2 lakh for yourself or someone else
Benefits of filing ITR
Filing ITR is not just a legal requirement, but it also has many benefits-
To get refund of tax deduction (TDS)
To carry forward capital loss to the next year
As income proof at the time of applying for bank loan, credit card or visa
To maintain financial transparency and credibility
ITR is both wisdom and security
If your income is less than the tax exemption limit, then even though it is not legally necessary to file ITR, but from the point of view of financial wisdom, this step becomes very important. This not only helps you move forward as per the rules of the government, but also prepares a strong financial foundation for the future. Filing ITR is not just filling a form, but is the first step towards becoming a responsible citizen and a smart investor.
