Income Tax Return Filing 2025: Who Needs to File and What You Should Know

The process for the filing of income tax returns (ITR) for the financial year 2024-25 (assessment year 2025-26) has started and the last day to file ITR is September 15, for non-audit ITRs.

On Friday, the Income Tax Department allowed taxpayers to file income tax returns through Excel Utility, but online filing is yet to start.

Who Needs To File An ITR?

Starting from a salaried employee, to a business owner, to even someone without a taxable income, here are several situations wherein filing income tax is either mandatory or highly recommended.

1. Income Above Basic Exemption Limit: The basic exemption limit under the new tax regime for the assessment year 2025-26 is Rs 4 lakh, which is applicable to all individuals irrespective of their age. Under the old tax regime, the exemption limit stands at Rs 2.5 lakh for individuals below 60 years. while for senior citizens it is Rs 3 lakh, and Rs 5 lakh for super senior citizens.

2. Income Below Threshold: If your income is below the threshold of the exemption limit, you must file an ITR if you deposited more than Rs 1 crore in one or more current accounts during a financial year, or you have spent over Rs 2 lakh on foreign travel on yourself or another person. You must also file an ITR in case, you incurred electricity expenses over Rs 1 lakh during a fiscal year or a TDS/TCS of more than Rs 25,000 was deducted or collected (Rs 50,000 for senior citizens). Additionally, if you own foreign assets or have signing authority for foreign accounts or if you are a company or firm.

Which ITR Form Should You Choose?

ITR-1 (Sahaj): This ITR form is for resident individuals (not HUFs) with an income of up to Rs 50 lakh from salary, long-term capital gains tax up to Rs 1.25 lakh under Section 112A, one house property, other sources (interest, etc.), and no capital gains or business income.

ITR-2: For individuals and HUFs with income from capital gains, more than one house property, foreign income/assets, but no business or professional income.

ITR-3: This form is for individuals and HUFs with income from a business or profession, including partners in firms.

ITR-4 (Sugam): This form is for resident individuals, HUFs, as well as firms (other than LLPs) with a presumptive income under sections 44AD, 44ADA, or 44AE, and income up to Rs 50 lakh (for individuals).

ITR-5: This form is for partnership firms, LLPs, AOPs, BOIs, cooperative societies, and other persons not filing ITR-7

ITR-6: For companies other than the ones claiming exemption under section 11 (income from charitable or religious activities).

ITR-7: This form is for people including trusts, political parties, research institutions, universities, or funds claiming exemption under sections 139(4A) to 139(4F).

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