This article provides a detailed guide on ITR forms, their applicability, and mandatory filing criteria for FY 2024-25 (AY 2025-26).
What is ITR?
Income Tax Return (ITR) is a form through which taxpayers report their annual income, deductions, and tax liability to the Income Tax Department of India. The Central Board of Direct Taxes (CBDT) releases ITR forms every financial year, outlining the filing procedures.
The available ITR forms include: ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, and ITR-7. Each taxpayer must select the correct form based on their income sources and category.
Why Should You File ITR?
Filing ITR is mandatory for specific individuals and entities. Here’s why you should file your return:
- To claim an income tax refund.
- If you have foreign income or investments.
- If you require an ITR for visa applications or loan approvals.
- If you run a business or firm, even in case of a loss.
- To carry forward losses under capital gains or business income.
- To maintain a clean financial and credit history.
When is it Mandatory to File ITR in India?
Filing an income tax return is mandatory if your total income exceeds the basic exemption limit. Below are the limits under different tax regimes:
Additional Mandatory Filing Conditions
Even if your income is below the exemption limit, you must file ITR if:
- Bank Deposits: You have deposited over ₹1 crore in a current account or ₹50 lakh in a savings account.
- Foreign Travel: You have spent over ₹2 lakh on international travel.
- Electricity Bill: Your annual electricity consumption exceeds ₹1 lakh.
- TDS/TCS Payments: If TDS or TCS exceeds ₹25,000 (₹50,000 for senior citizens).
- Business/Professional Income: If your business turnover exceeds ₹60 lakh or your professional income exceeds ₹10 lakh.
Disclaimer -- The above information may be changed or ammended by government.