ITR Filing 2025: The Union Budget 2025 raised this limit to Rs 4 lakh
ITR Filing 2025: As the Income Tax Return (ITR) filing season begins, one question often confuses many taxpayers: Do I need to file an ITR if my income is below the taxable limit?
According to Indian tax laws, filing ITR is mandatory only if your income exceeds the basic exemption limit, which varies depending on the tax regime chosen – old or new.
Minimum Income Required To File ITR:
Under Old Tax Regime:
- 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 New Tax Regime:
- The exemption limit for all individuals is Rs 3 lakh.
However, the Union Budget 2025 raised this limit to Rs 4 lakh under the revised new regime tax slabs.
When You Must File ITR Even If Your Income Is Below The Threshold:
Even if your income is below the basic exemption limit, filing ITR becomes mandatory in certain situations:
- Deposits over Rs 50 lakh in a savings account during the year
- Deposits over Rs 1 crore in a current account (not applicable to businesses)
- Annual turnover exceeding Rs 60 lakh (for businesses)
- Professional income over Rs 10 lakh
- Electricity bill payment of over Rs 1 lakh in a year
- TDS/TCS deduction of Rs 25,000 or more (Rs 50,000 for senior citizens)
- Foreign assets or accounts – including signing authority or beneficiary status
- Spending over Rs 2 lakh on foreign travel (self or others)
- Why Filing ITR Can Be Beneficial Even If Not Mandatory:
- To claim TDS refunds
- To carry forward capital losses
- For loan or visa applications, where income proof is required
- To establish financial credibility
In essence, while not everyone is legally required to file an ITR, doing so can open the door to various financial benefits and help in long-term planning.
