🧾 Is ITR Filing Mandatory for You? Here's When You MUST File Your Return [AY 2025–26]

📣 Why This Blog?

Many individuals skip filing their Income Tax Return (ITR) thinking it’s only for those earning above ₹2.5 lakhs. ❌

But did you know that even if your income is below taxable limits, there are at least 9 situations where ITR filing is compulsory?

Let’s explore each scenario—simplified with real-life examples and updated thresholds for AY 2025–26 (FY 2024–25).

✅ Section 139(1): Basic Rule

• If you are a Company, LLP, or Partnership Firm — 📌 ITR filing is always mandatory.
• For others: If Gross Total Income (GTI) exceeds the basic exemption limit (before claiming deductions under 54/54EC, etc.), you must file ITR.

📌 10 Scenarios Where ITR Filing Is Compulsory (Even If Income < ₹2.5L)

🔹 1. You Own or Benefit From Foreign Assets or Accounts

If you're a Resident Individual (excluding RNOR) and:

• Are a beneficial owner or beneficiary of foreign assets or accounts, OR
• Hold signing authority in an account outside India

👉 You must file ITR.

📘 Example:

Rita has a bank account in Dubai (joint with her brother). She must file ITR even if her income is just ₹2.4 lakhs.

🔹 2. Deposited ₹1 Cr+ in Current Account / ₹50L+ in Savings Account

If during the year, you deposited:

• 💰 More than ₹1 crore  in one/more current accounts, OR
• 💸 ₹50 lakhs or more in savings accounts

👉 ITR filing becomes mandatory.

📘 Example:

Raj deposited ₹55 lakhs in his savings account after selling a house. His income is ₹2.2 lakhs — but he must file ITR.

🔹 3. Foreign Travel Expenses > ₹2 Lakhs

Spent ₹2L or more on foreign travel for yourself or others?

🧳 Even if your income is below ₹2.5L, you must file ITR.

📘 Example:

Akshay spent ₹2.4 lakhs on his honeymoon trip to Europe. His income is ₹2.3L. Still, ITR is mandatory.

🔹 4. Paid Electricity Bill Over ₹1 Lakh in a Year

If your electricity consumption exceeded ₹1,00,000 in a financial year, file your ITR.

📘 Example:

Your ₹9,000/month electricity bill = ₹1,08,000 annually. Even with ₹2L income, you must file ITR.

🔹 5. Business Turnover > ₹60 Lakhs OR Professional Receipts > ₹10 Lakhs

If you're self-employed or running a business:

• Turnover > ₹60L (business)
• Gross Receipts > ₹10L (professionals)

📘 Example:

Freelancer Neha earned ₹11 lakhs from content writing. Her net income is ₹2.1L — but ITR is still mandatory.

🔹 6. TDS or TCS of ₹25,000+ (₹50,000 for Senior Citizens)

Even if your income is below taxable limit, but:

• 💸 TDS and TCS deducted is ₹25,000+, or
• ₹50,000+ for senior citizens

👉 File ITR to claim refund and avoid notices.

📘 Example:

Dadi earned ₹5.2 Lakh from FDs. TDS ₹52,000 was deducted. ITR filing is a must.

🔹 7. To Claim TDS or TCS Refund

You must file your return to claim any tax refund — even if your total income is below exemption limits.

📘 Example:

Ankit earned ₹2.35L, but TDS of ₹6,000 was deducted by the bank. He can’t get it back unless he files ITR.

🔹 8. To Carry Forward Losses

Have capital or business losses?

👉 You can carry forward only if you file your return within due date.

📘 Example:

Shreya sold shares at a loss of ₹45,000. To adjust this against future gains, she must file ITR on time.

🔹 9. For Visa or Loan Applications

Though not legally mandatory, many embassies, banks, and NBFCs insist on ITR copies for:

• Visa applications
• Personal/education/home loans
• Business registration

📘 Example:

Ravi wants a Canada study visa. Showing past 2 years of ITR makes the case much stronger.

📆 Due Date for AY 2025–26 ITR Filing

👤 Taxpayer Type	📅 Due Date
Individual (non-audit case)	15th September 2025 (Extended)
Company / Tax Audit Cases	31st Oct 2025
Transfer Pricing Cases	30th Nov 2025

🛑 Penalties for Not Filing ITR (When Mandatory)

Situation	Penalty / Consequence
Delay in ITR (after due date)	₹1,000 to ₹5,000 late fees
Refund stuck	Can’t claim without filing
Legal notice	May be issued under Section 142
Ineligible for losses carry-forward	If not filed on time

👨‍💼 Still Confused?

At Kumar Ravi & Company, we offer:

✔️ Expert filing for salaried, freelancers, NRIs, business owners

✔️ Help with old ITRs, TDS mismatch, foreign assets

📞 Contact us today or WhatsApp for free consultation.

📣 Conclusion: Don’t Take Chances — File If Any of These Apply!

Even if your income seems “non-taxable”, one of the above 9 reasons might make your ITR filing legally mandatory.

👉 Avoid penalties. Protect your financial future. File smart. File on time.