The income tax return (ITR) filing has started for the financial year 2024-25 (assessment year 2025-26) as the IT Department has enabled Excel Utility for ITR-1 and ITR-4 for AY 2025-26. Here, we are going to talk about individuals for whom Income Tax Return filing is mandatory in India.
According to the Income Tax Department, seven types of people must file their returns. Failure to do so may result in certain penalties. Let's find out about these individuals.
1. Having Income Above Basic Exemption Limit
Those with income above the basic exemption limit need to file an Income Tax Return (ITR). The basic exemption limit under the old tax regime is Rs 2.5 lakh and under the new tax regime is Rs 3 lakh for FY 2024-25 or AY 2025-26.
2. Having Foreign Assets or Income
Individuals having foreign assets or income must file their ITR.
3. Those Having Deposits Over Rs 50 Lakh On Savings Account, Above Rs 1 Crore In Current Account
If an individual has deposited over Rs 50 lakh in a savings account or Rs 1 crore in a current account in a financial year, he must file ITR.
4. Those Spending Over Rs 2 Lakh On Foreign Travel
Those individuals who have travelled abroad and spent over Rs 2 lakh must file an ITR.
5. Paid over Rs 25,000 as TDS/TCS
Those individuals who have paid a Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) of over Rs 25,000 in a financial year must file an Income Tax Return. For senior citizens, the limit is Rs 50,000.
6. Paying Electricity Bill Of Over Rs 1 lakh
If an individual has paid an electricity bill of over 1 lakh in a financial year, he or she must file the ITR.
7. Having A Business Turnover Of Over Rs 60 Lakh, Professional Receipts Of Over Rs 10 lakh
Individuals running a business and having a turnover of above Rs 60 lakh in a financial year must file an ITR. Professionals receiving over Rs 10 lakh in a financial year as their fees or receipts must also file ITRs.