"Income Tax Return 2025 India"

🧾 Income Tax Return (ITR) in India – Complete Guide for 2025

Filing an Income Tax Return (ITR) is a crucial part of financial responsibility for individuals and entities in India. Whether you're salaried, self-employed, or a business owner, ITR filing ensures your earnings and taxes are officially reported to the government.

This guide answers key questions: What is ITR? Who should file it? What are the benefits? When is it mandatory? Who is exempt?

✅ What is Income Tax Return (ITR)?

An Income Tax Return (ITR) is a form used to report:

Annual income earned from various sources
Tax-saving deductions and exemptions
Tax paid (if any) and refund claims

Taxpayers must choose the correct ITR form (e.g., ITR-1, ITR-2, ITR-3) based on income type—salary, business income, property, capital gains, or foreign assets.

👤 Who is Required to File ITR in FY 2024–25?

ITR filing is mandatory for:

Individuals: Salaried employees, freelancers, and self-employed
HUFs, Firms & Companies: Regardless of income or loss
Trusts, Associations, and NGOs

📌 Income Thresholds for ITR Filing:

Under Old Regime:

Below 60 years: Income > ₹2.5 lakh
Age 60–80 years: Income > ₹3 lakh
Age 80+: Income > ₹5 lakh

Under New Regime:

Income > ₹4 lakh for all individuals

You must also file ITR if:

You want to claim a tax refund
You have capital gains or rental income
You wish to carry forward business losses
You are a partner, LLP, or private limited company

💡 Key Benefits of Filing ITR

Even if not compulsory, here’s why you should file ITR:

Benefit	Why It Matters
✔️ Loan Approval	Banks request ITRs for home, car, or personal loans
✔️ Visa Applications	Acts as income proof for foreign travel
✔️ Claim Tax Refunds	Required for refund of excess TDS
✔️ Income Proof	Needed for credit cards, property rental, or high insurance
✔️ Avoid Penalties	Late/non-filing penalty up to ₹5,000 under Sec 234F
✔️ Loss Carry Forward	Only allowed with timely ITR filing
✔️ Govt Contracts	Often required for tender participation

📅 When is ITR Filing Mandatory?

Besides income limits, ITR filing is compulsory in the following cases:

Deposited ₹1 crore+ in bank accounts
Spent ₹2 lakh+ on foreign travel
Paid ₹1 lakh+ on electricity bills
Owned foreign assets or held a foreign bank account
Bank savings deposits exceed ₹50 lakh
Professional income exceeds ₹10 lakh
Business turnover exceeds ₹60 lakh
TDS/TCS is more than ₹25,000 (₹50,000 for senior citizens)

⏳ Filing Deadlines:

Individuals: July 31, 2025
Firms/Companies: October 31, 2025 (unless extended)

🙌 Who is Exempted from Filing ITR?

Under Section 194P (introduced in Budget 2021), senior citizens can skip ITR filing if:

Criteria	Details
👵 Age	Must be 75 years or older
🏠 Residency	Must be a resident of India
💰 Income Type	Only pension + interest from the same bank
📝 Declaration	File a declaration with the notified bank
🏦 Bank Type	Must be a government-specified bank that deducts TDS accordingly

📌 Final Thoughts

Filing an ITR is more than a tax obligation—it’s a financial discipline that improves your credibility, supports major transactions, and ensures compliance. Whether you're a high-income earner or a retiree with minimal income, understanding the filing rules can help you avoid unnecessary penalties and stay financially secure.

DISCLAIMER
Airfinac.com, its author/writer and associates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.