Who Is Not Required to File an Income Tax Return in India?
Updated Guide for FY 2024–25 | AY 2025–26
Income Tax Return (ITR) filing is often seen as a mandatory yearly task. But did you know that not everyone is required to file an ITR?
While filing is strongly recommended—even for those with low or nil income—there are specific conditions under which individuals are not legally obligated to file their returns in India.
This article simplifies who is exempt from ITR filing for FY 2024–25 and when filing becomes optional.
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🧾 Who Is NOT Required to File ITR?
As per the Income Tax Act, you are not required to file ITR if:
1. Your Gross Total Income (Before Deductions) Is Below the Basic Exemption Limit
Age Group Basic Exemption Limit
Below 60 years ₹2.5 lakh
60–79 years (Senior Citizens) ₹3 lakh
80+ years (Super Senior) ₹5 lakh
🔁 If your income before deductions (like 80C, 80D, etc.) is below these thresholds, ITR filing is not mandatory.
2. Your Only Income Is from Tax-Free Sources
You are exempt from filing ITR if:
• Your income is only from agriculture (below ₹5,000), or
• You receive income that is completely tax-free (like interest from tax-free bonds, dividend from certain funds, etc.), and your total income remains below the exemption limit.
3. Senior Citizens Above 75 Years (with Specific Conditions)
Under Section 194P, senior citizens aged 75 years or above are not required to file ITR if:
• Their only income is pension + interest from the same bank, and
• They submit Form 12BBA to the bank authorizing it to compute and deduct applicable taxes
💡 This applies only if the bank is a notified bank by the Income Tax Department.
4. You Have Zero Taxable Income (After Deductions)
If your total income is above the basic limit but falls below taxable limits after deductions under Chapter VI-A (like 80C, 80D, 80TTB), technically you can skip filing.
However, it is still highly recommended to file a Nil return to maintain your compliance record.
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⚠️ When You MUST File ITR (Even If Income Is Below Limits)
You are required to file ITR in the following cases:
• You want to claim a refund of excess TDS
• You have foreign assets or income
• Your electricity bill exceeds ₹1 lakh/year
• You deposited ₹1 crore+ in a current account
• You spent over ₹2 lakh on foreign travel
• You're applying for a loan or visa
• You have capital gains (even small amounts)
• You are a partner in a firm, even with nil profit
📘 Example Scenarios
✅ Not Required:
Mr. Rao (age 58) earns ₹2.2 lakh from part-time tuition – No ITR needed
❌ Required:
Ms. Asha (age 62) earns ₹2.8 lakh from bank interest and invests ₹50,000 in PPF → After 80C, her income is ₹2.3 lakh, but since gross income > ₹3 lakh, she must file
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Final Words
While ITR filing is not mandatory for everyone, it's still a good financial habit—even if you fall under the exempt category.
Filing helps with:
• Faster loan processing
• Building financial credibility
• Accessing refunds
• Visa documentation
So, even if you’re not required to file, consider doing so for your financial peace of mind.
Unsure if you need to file an ITR this year?
Our team will assess your case and guide you, so you file only if required, and avoid unnecessary hassles.
👉 https://callmyca.com/business-tax-filing
