As the Income Tax Return (ITR) deadline for the Financial Year 2024-25 approaches on September 15, 2025, taxpayers are being reminded by the Income Tax Department
via SMS alerts to file and e-verify their returns on time. Failure to comply could result in penalties, making timely action essential. Under the new tax regime, the basic exemption limit is Rs 3 lakh, while under the old tax regime, it is Rs 2.5 lakh. If your gross income before deductions crosses these thresholds, ITR filing is compulsory. Rules To File ITR But the rules go deeper. Even if you earn less than the exemption limit, you may still have to file a return. For example, if you: Deposit Rs 1 crore or more into a current account in a financial year Deposit Rs 50 lakh or more in a savings account Spend Rs 2 lakh or more on foreign travel—then you’re required to file an ITR, regardless of your income level. Old Vs New Tax Regime: A Key Difference Let’s say your salary is Rs 2.5 lakh and you earn Rs 80,000 in Long-Term Capital Gains (LTCG) from selling mutual fund units. Under the old tax regime, you could claim Section 80C deductions (up to Rs 1.5 lakh), bringing your taxable income down to Rs 1.8 lakh, no need to file. However, under the new regime, such deductions aren’t allowed. This means your taxable income stays at Rs 3.3 lakh, making ITR filing mandatory. Filing ITR Offers More Than Just Compliance There are numerous advantages to filing your return, even if you’re not technically required to. These include: Claiming TDS refunds Carrying forward capital losses to offset future gains Providing income proof for loan applications or visa processing Maintaining a solid financial record for better credibility Also, ITR filing is compulsory for anyone who owns foreign assets, has TDS deducted, or engages in specified high-value transactions. Whether your income is high or modest, the ITR rules have evolved to capture a broader base of taxpayers. If you meet any of the mandatory conditions, even without reaching the exemption limit, filing your return is not optional.
