The Income Tax Return (ITR) filing season for Financial Year 2024-25 (Assessment Year 2025-26) is underway. Filing your return not only ensures legal compliance but also allows you to claim refunds, carry forward losses, and serve as proof of income for financial transactions. Whether you are a salaried individual, a business owner, an NRI, or a freelancer, understanding the applicable filing requirements is crucial.
In this blog, we cover the income tax filing process for FY 2024-25 and explain the mandatory filing conditions, especially those introduced under the Seventh Proviso to Section 139(1) of the Income Tax Act, 1961.
What is an Income Tax Return?
An Income Tax Return (ITR) is a form in which a taxpayer reports their income, deductions, exemptions, taxes paid, and tax liability to the Income Tax Department. The form type varies based on income source, category of the taxpayer (individual, firm, company), and residential status.
Applicability of ITR for FY 2024–25
Here are some general categories of taxpayers who should file their returns:
- Individuals with income above basic exemption limit
- Companies and firms (mandatory, regardless of income)
- NRIs earning income in India
- Freelancers and professionals
- Trusts and associations
- Senior citizens and super senior citizens, depending on their income level
Basic Exemption Limits for FY 2024-25
Under Old Tax Regime:
| Age Category | Exemption Limit |
| Individuals < 60 years | ₹2.5 Lakhs |
| Senior Citizens (60–80) | ₹3 Lakhs |
| Super Senior Citizens (80+) | ₹5 Lakhs |
Under New Tax Regime:
- Flat exemption limit for all: ₹3 Lakhs
- No benefit of deductions under Sections 80C, 80D, HRA, etc.
Taxpayers can choose between old and new regimes while filing their return.
ITR Forms Applicable for AY 2025-26
| ITR Form | Applicability |
| ITR 1 | Resident Individuals with income up to ₹50 lakhs from salary, one house property, and other sources |
| ITR 2 | Individuals and HUFs not having income from business or profession |
| ITR 3 | Individuals and HUFs having income from business or profession |
| ITR 4 | Presumptive income (under Sections 44AD, 44ADA, 44AE) for individuals, HUFs and firms |
| ITR 5–7 | Applicable to LLPs, firms, companies, trusts, and other entities |
Note: Non-residents (NRIs) cannot file ITR 1 or ITR 4.
Due Dates for Filing ITR for FY 2024–25
| Category of Taxpayer | Due Date |
| Individuals / HUFs not requiring audit | 31st July 2025 |
| Persons requiring audit | 31st October 2025 |
| Companies / Firms | 31st October 2025 |
| Transfer Pricing Cases | 30th November 2025 |
UPDATE: Due date for non-audit cases has been extended to 15th September 2025.
When is Income Tax Return Filing Mandatory?
While many people file ITR voluntarily to claim refunds or create income proof, the Income Tax Act mandates filing under several scenarios, especially as per Seventh Proviso to Section 139(1).
Below are the situations where ITR Filing is Mandatory even if income is below exemption limits:
1. Deposits exceeding ₹1 crore in current account
Condition: If you have deposited ₹1 crore or more in one or more current accounts during FY 2024-25.
Example: Business owners or professionals depositing high volumes in current accounts.
2. Expenditure of over ₹2 lakhs on foreign travel
Condition: If you spent over ₹2 lakhs on foreign travel for yourself or any other person.
Example: You booked a family trip abroad – ITR filing is mandatory.
3. Electricity bills exceeding ₹1 lakh
Condition: If you incurred expenses of over ₹1 lakh on electricity consumption in the year.
Example: Households with high air-conditioning or industrial usage may fall under this category.
4. Additional Conditions under Clause (iv) of Seventh Proviso to Section 139(1):
The following thresholds make ITR filing mandatory, regardless of your total income:
| Condition | Threshold | Remarks |
| Business Turnover | Exceeds ₹60 lakhs | For self-employed / business taxpayers |
| Professional Receipts | Exceeds ₹10 lakhs | For professionals like doctors, lawyers, consultants |
| TDS + TCS | Aggregate exceeds ₹25,000 (₹50,000 for senior citizens) | Check Form 26AS for details |
| Savings Account Deposits | Total deposits exceed ₹50 lakhs in a year | Includes all savings bank accounts |
ITR Filing Checklist: Documents Required
- PAN Card
- Aadhaar Card
- Form 16 / Salary Slips
- Bank statements
- Form 26AS / AIS & TIS (Tax Information Summary)
- Investment proofs (for old regime)
- Interest certificates (FDs, Savings)
- Capital gains statement (if applicable)
- Details of foreign income/assets (if NRI or resident with foreign interests)
Benefits of Filing ITR
- Claim Refunds: If TDS has been deducted in excess
- Loan & Visa Processing: ITR acts as proof of income
- Carry Forward of Losses: Only available if return is filed on time
- Avoid Penalties: ₹1,000 to ₹5,000 for late filing
- Stay Compliant: Helps avoid notices and scrutiny
Mandatory ITR Filing Under Seventh Proviso to Section 139(1): Summary
Below is a summary of all the conditions that make ITR filing mandatory irrespective of income level:
| Clause | Condition | Threshold |
| (i) | Deposits in current account | ₹1 crore or more |
| (ii) | Foreign travel expenses | ₹2 lakhs or more |
| (iii) | Electricity consumption | ₹1 lakh or more |
| (iv)(a) | Business turnover | ₹60 lakhs or more |
| (iv)(b) | Professional receipts | ₹10 lakhs or more |
| (iv)(c) | Aggregate of TDS/TCS | ₹25,000 or more (₹50,000 for senior citizens) |
| (iv)(d) | Deposits in savings accounts | ₹50 lakhs or more |
Final Words
Income Tax Return filing is not just a legal requirement,it’s a smart financial habit. With the new reporting requirements and stricter compliance under Section 139(1), it’s vital to evaluate all your financial transactions during FY 2024–25. Even if your income is below the exemption limit, you may still be liable to file an ITR under the Seventh Proviso.
If you’re unsure about your applicability, consult a qualified Chartered Accountant.
Don’t forget: The due date for non-audit cases is now extended to 15th September 2025.
