Who Must File: Legal Requirements for ITR

Mandatory Filing Criteria for Individuals

Income Threshold:

Any Individual whose Gross Total income exceeds:

• ₹2.5 lakh (for individuals below 60 years)
• ₹3.0 lakh (for senior citizens aged 60–79 years)
• ₹5.0 lakh (for super senior citizens aged 80+ years)

Foreign Assets or Income:

• Resident individuals who have foreign assets or foreign income.

TDS / TCS of ₹25,000 or more:

• If TDS or TCS is ₹25,000 or more in the financial year (₹50,000 for senior citizens).
  
  

Deposit in Bank Account:

• If you deposited ₹1 crore or more in one or more current accounts.
• If you deposited ₹50 Lacs or more in one or more savings accounts.
  
  

Foreign Travel Expenses:

• Incurred expenses of ₹2 lakh or more on foreign travel for yourself or any other person.

Electricity Consumption:

• Incurred ₹1 lakh or more on electricity consumption in a financial year.

Business Turnover / Gross Receipts/Audit:

• If total turnover or gross receipts in business exceeds ₹40 lakh or in profession exceeds ₹5 lakh.
• If you are covered under Audit Provisions of section 44AB/44ADA.

Capital Gains / Income from Specified Sources:

• If total income includes income from capital gains, crypto trading, speculative income, etc., even if it’s below the exemption limit.

Claiming Refund:

• If you want to claim a refund of TDS/TCS or any excess tax paid.

Carry Forward Losses:

• If you want to carry forward a loss under any head of income (e.g., capital loss, business loss, House Property loss), you must file the return within the due date.

Beyond Obligation: Benefits of Filing ITR Voluntarily

Top Reasons to File voluntarily ITR Even if it is not Mandatory:

ITR is accepted as valid proof of income for various purposes like:

• Visa applications
  
• Bank loan applications (home/car/education)
• Government tenders or contracts
• Credit card issuance or financial documentation
• For Buying Insurance
• Some government subsidies or schemes require proof of tax filing.