Who Must File an Income-tax Return in India? – myITreturn Help Center

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An income-tax return may be mandatory because of income, taxpayer status, foreign holdings or specified financial transactions. Tax payable being nil does not necessarily make filing optional.

Basic Income Threshold for Individuals

Regime or category for AY 2026-27	Basic exemption limit
Default new tax regime	₹4,00,000
Old regime — individual below 60 years	₹2,50,000
Old regime — resident senior citizen aged 60 to below 80	₹3,00,000
Old regime — resident super senior citizen aged 80 or more	₹5,00,000

An individual, HUF, AOP, BOI or artificial juridical person is generally required to file when total income, computed before specified Chapter VI-A deductions and capital-gain exemptions, exceeds the applicable maximum amount not chargeable to tax.

Rebate is not the basic exemption limit. A taxpayer may have nil tax after rebate but may still be required to file because income exceeded the filing threshold.

Entities That Generally File Regardless of Profit

Companies, including companies with a loss or no income.
Firms and LLPs, including loss-making firms.
Trusts, institutions, political parties and other entities where a special filing provision applies.

Foreign Asset and Signing-Authority Cases

A resident ordinarily resident person may have to file even below the basic exemption limit if covered by the statutory foreign-asset rules, including holding an asset or financial interest outside India, having signing authority in a foreign account or being a beneficiary of a foreign asset, subject to the exact conditions.

Specified High-Value Conditions

Filing is also mandatory where any condition under the seventh proviso to section 139(1) and Rule 12AB is met, including:

Current-account deposits exceeding ₹1 crore.
Foreign-travel expenditure exceeding ₹2 lakh.
Electricity expenditure exceeding ₹1 lakh.
Business turnover exceeding ₹60 lakh.
Professional receipts exceeding ₹10 lakh.
TDS and TCS of ₹25,000 or more, or ₹50,000 or more for a resident senior citizen.
Savings-account deposits of ₹50 lakh or more.

One condition is sufficient. The person need not satisfy every high-value condition. The correct ITR form must then be selected according to the actual income profile.

Other Situations Where Filing May Be Needed

To claim an income-tax refund.
To carry forward eligible business or capital losses, for which timely filing may be essential.
To comply with a notice requiring a return.
To report income that is taxable at a special rate.
To meet a statutory requirement applicable to a charitable institution, political party, investment fund or another specified person.

When Filing May Be Voluntary

A person below the income threshold and outside all mandatory conditions may still file voluntarily. This may create a documented income record or enable a refund claim. A voluntary return must still be complete and accurate.

Nil Return Explained

A nil return is simply an ITR with no final tax payable. It is not a separate form and does not override mandatory-filing rules. Nil tax may result from the basic exemption limit, deductions, rebate or taxes already paid.

Before deciding: Check gross income before specified deductions, taxpayer type, residential status, foreign assets, bank deposits, TDS/TCS, turnover and major expenditures.

Income-tax Act, 2025 Transition

Returns for FY 2025-26 and AY 2026-27 continue under the Income-tax Act, 1961. The Income-tax Act, 2025 applies to tax year 2026-27 beginning 1 April 2026. Do not apply the new Act’s terminology or section numbering to an AY 2026-27 return without checking the transition rules.

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