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When it comes to Income Tax Returns (ITR), a common belief is that if your annual income is less than ₹2.5 lakh, you don’t need to file.

Technically, that’s correct for most people, the law doesn’t require it below this limit.

But there are many situations where filing ITR is mandatory even if the income is low.

Today we will understand all such important conditions for the Financial Year 2024-25.

If you have done some high-value transactions during the year, then filing ITR may be necessary. For example:

• Deposited more than ₹1 crore in your current account.

• Deposited more than ₹50 lakh in your savings account.

• Spent more than ₹2 lakh on foreign travel.

• Paid more than ₹1 lakh in your electricity bill.

• Your business turnover is more than ₹60 lakh, or
• Your professional income is more than ₹10 lakh.

If the TDS (Tax Deducted at Source) or TCS (Tax Collected at Source) deducted in your name is more than ₹25,000, filing ITR is mandatory.

• For Senior Citizens, the limit is ₹50,000.

You must file ITR, irrespective of income, if you have:

• Any bank account or property outside India, or

• Signature authority over such accounts.

Refund Claim
If you have had TDS deducted (e.g., on a fixed deposit) and your income is tax-free, filing ITR is necessary to claim that refund.

Loans and Visa
For home loan, vehicle loan, or personal loan applications, banks often demand ITRs for the past few years.
ITR is also an important proof of income for visa applications.

Carrying Forward Losses
If you have suffered a loss in business or capital gain, you must file ITR to adjust it against future income.

Income Proof
ITR is accepted as proof of income for government schemes, scholarships, grants, or subsidies.

Important Note on Long-Term Capital Gains (LTCG)
In LTCG, income up to ₹1 lakh from shares or mutual funds is tax-free.
To avail this exemption, you must declare it in your ITR.

Old Regime
Allows multiple deductions such as 80C, 80D, 24(b).

New Regime
Lower tax rates but limited deductions.

Conclusion
Even if your income is less than ₹2.5 lakh, if you meet any of the above conditions, filing ITR is mandatory.

Filing on time gives you multiple benefits and helps you avoid any legal trouble in the future.