The tax season is approaching, and filing your Income Tax Return (ITR) on time is crucial to ensure compliance with the tax laws to avoid interest and penalties. In some cases, it is also crucial to file an ITR to claim a tax refund(if any). For the FY 2024-25 (AY 2025-26), various categories of taxpayers must file their ITR. In this article, we will explore about the categories of taxpayers that are mandatorily required to file ITR. 

Categories of Taxpayers Required to File ITR for FY 2024-25 (AY 2025-26)

1. If your total income in the year is more than the tax-free limit:

2. If you want to claim an income tax refund.

3. If you have earned from or have invested in foreign assets during the FY.

4. If you wish to apply for a visa or a loan

5. If the taxpayer is a company or a firm, irrespective of profit or loss.

6. If you have loss from business/profession or under capital gains head, you will not be allowed to carry them forward to the next years unless you file the return before the due date.

Even if your income falls below the basic exemption limit, it is mandatory to file ITR if you meet any of these conditions:

1. If you have deposited a total of Rs. 1 crore or more in one or more current accounts with a bank. However, no such requirement has been specified for deposits made in with post office current accounts

2. If your have deposited more than Rs 50 lakh in your 'savings' bank accounts

3. If you have spent more than Rs 2 lakh on foreign travel whether for yourself or any other person

4. If the yearly electricity expenditure is more than Rs 1 lakh

5. If your tax is withheld in form of TDS/TCS is more than Rs 25,000. In the case of a senior citizen (above 60 years), this limit is Rs 50,000

6. Your business turnover is more than Rs 60 lakh

7. Income from your profession is more than Rs 10 lakh

8. If the aggregate of TDS and TCS is Rs. 25,000 or more during the FY.

Note: The government had released a notification vide Notification No. 37/2022 dated 21st April 2022 specifying additional conditions for filing income tax returns even if income is below the basic exemption limit.

Income Tax Return Filing for NRIs

NRI or not, any individual whose income exceeds Rs 2.5 lakh under the old regime or Rs. 3 lakhs under the new regime (for FY 2024-25) is required to file an income tax return in India. The limit is the same for all NRIs. There is no higher threshold limit for senior or super-senior citizens. Please note that for an NRI, income earned or accrued in India is taxable.

There is one more exception for the NRI taxpayers. Unlike the resident Indians, if there is a long-term or short term capital gain, the non-residents are not eligible to benefit from the basic exemption limit. Hence, if the capital gains exceed the basic exemption limit, the NRI must file an income tax return.

Why e-File Income Tax Return

A significantly large number of returns are e-filed, and gradually the income tax department is hoping to bring all returns online. It is mandatory to file the income tax returns online for all the registered taxpayers who has taxable income. However, paper returns can be filed by those above 80 years of age who do not have any income from regular business or professional income.

There are some legal consequences for late filing.

Penalties for Non-Filing Income Tax Return

Not filing your ITR by 31st July 2025 will result in a penalty of Rs 5,000. However, if your income is below Rs 5 lakhs, then the penalty be reduced to Rs 1,000.

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