Who is Required to File an Income Tax Return in India?
Filing an Income Tax Return (ITR) in India is not only a compliance requirement but also a legal obligation for certain individuals and entities. Section 139(1) of the Income Tax Act, 1961, lays down the conditions under which filing a return becomes mandatory. Here’s a comprehensive guide to understanding who must file an ITR in India, the due dates, and exceptions.
Mandatory Filing Based on Income Threshold
Any individual, Hindu Undivided Family (HUF), Association of Persons (AOP), Body of Individuals (BOI), or any artificial juridical person whose total income exceeds the basic exemption limit for a financial year must file an ITR.
Basic Exemption Limit for FY 2024–25 under the new regime (for most individuals below 60 years): ₹3,00,000
Under the old regime (for individuals below 60 years): ₹2,50,000
Even if deductions under Chapter VI-A (such as Section 80C, 80D, etc.) or exemptions under Sections 10, 54, etc., bring your taxable income below the threshold, you may still be required to file a return under certain scenarios.
Due Dates for Filing Income Tax Return
As per Section 139(1), the due dates vary depending on the nature of the assessee:
| Category of Assessee | Due Date for Filing ITR |
|---|---|
| Companies, LLPs, and firms whose accounts require audit | 31st October |
| Assessees required to furnish report under Section 92E (Transfer Pricing) | 30th November |
| All other individual taxpayers (not covered above) | 31st July |
Additional Filing Requirements Irrespective of Income
Certain individuals must file their returns even if their income is below the taxable limit. As per amendments made through the Finance Bill, 2015, any resident individual (other than not ordinarily resident) must file a return if, during the year, they:
Hold (as beneficial owner or otherwise) any asset outside India, or
Have signing authority in any foreign bank account, or
Are beneficiaries of any asset located outside India
In such cases, filing a return is mandatory, irrespective of the income level.
Specified High-Value Transactions That Mandate Return Filing
Even if the total income is below the taxable limit, a return must be filed by an individual (other than company or firm) if they have:
Deposited more than ₹1 crore in one or more current accounts during the financial year
Incurred foreign travel expenditure exceeding ₹2 lakh
Paid electricity bills exceeding ₹1 lakh in a year
Any other conditions as may be prescribed by the Central Board of Direct Taxes (CBDT)
Example Case: Understanding with a Practical Illustration
Let’s understand this with a simple example.
Mr. Arjun’s Income for FY 2024–25 (AY 2025–26):
Salary Income: ₹5,00,000
Loss from House Property: ₹(1,50,000)
Total Gross Income: ₹3,50,000
Deductions:
Health Insurance Premium: ₹25,000
LIC Premium: ₹1,00,000
Total Deductions: ₹1,25,000
Taxable Income: ₹2,25,000
Although Mr. Arjun’s taxable income is below the basic exemption limit, he is still advised to file an ITR. This is because to claim and carry forward the loss from house property, filing within the due date is mandatory.
Filing Return to Carry Forward Losses
Under Section 139(3) read with Section 80, if a person incurs a loss under the head:
“Profits and Gains of Business or Profession”
“Capital Gains”
and wishes to carry forward the same for set-off in future years, the return must be filed within the time allowed under Section 139(1). Failing to do so disqualifies the assessee from claiming such carried-forward losses.
Filing Through Employer (Section 139(1A))
Section 139(1A) also provides an optional mechanism for salaried individuals, allowing them to file their returns through their employers under the notified scheme known as the “Scheme for Filing of Return by Salaried Employees through Employer, 2004“. The employer, in turn, must submit these returns to the tax department before the due date.
Final Thoughts
Filing your Income Tax Return is not just a legal formality—it ensures that you stay compliant and avail the benefits such as carry-forward of losses, claiming refunds, and serving as valid proof of income. Even if your income is not taxable, certain transactions and foreign asset holdings can mandate filing.
To avoid penalties and preserve your rights under the law, it is always advisable to evaluate your situation at the end of the financial year and file your ITR by the applicable due date.
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