These 7 people must file Income Tax Return (ITR) in 2025. Are you one of them?

Filing Income Tax Return (ITR) is mandatory for some people or individuals or Income Tax assessees. In tax terminology, an assessee is any individual or entity that holds the legal liability of tax payment.

According to the Income Tax Department, there are seven types of individuals who must file their returns, failing which they may become liable to pay certain penalties. This article explains who these individuals are.

While calculating whether your income is above the basic exemption limit, do not include any exemptions or deductions. The tax department says ITR filing is necessary if the total income before deductions is above the basic exemption limit.

ITR filing is also mandatory for an individual having foreign assets or income. It is also required when an assessee is a signing authority in any foreign account.

ITR filing is mandatory for individuals who have deposited over ₹50 lakh in their savings bank account or more than ₹1 crore in their current account in a financial year.

If you have travelled abroad and spent over ₹2 lakh, you must file an ITR.

ITR filing is required for individuals having paid TDS/TCS of over ₹25,000 in a year. In case of senior citizens, this limit is ₹50,000.

If you have paid over ₹1 lakh in electricity bills in a year, you must file the ITR.

If you are running a business and your turnover is above ₹60 lakh in a financial year, then you must file ITR. Professionals receiving over ₹10 lakh in a financial year as their fees/receipts must also file returns.

Apart from the above, companies and firms are always required to file their returns, irrespective of whether they are making a profit or a loss.

Benefits of ITR filing

There are many benefits of ITR filing. ITR filing is necessary to report income from all sources, including salary, business, property, etc. ITR filing also allows you to claim eligible tax deductions and exemptions, and to pay additional tax (if due) or claim a refund if paying in excess. Further, and most importantly, ITR filing helps taxpayers to comply with the law and maintain a record with the government.