What is ITR?
Income Tax Return (ITR) is a form where individuals or businesses declare their income, claim deductions, and pay taxes (if any) to the Income Tax Department of India.
Filing ITR is not just for the rich — in many cases, it’s mandatory, and in others, it’s strongly recommended.
Who Must File ITR in India?
✅ 1. Individuals with Income Above Basic Exemption Limit
If your total income (before deductions) is more than:
- ₹2.5 lakh (for age below 60)
- ₹3 lakh (for age 60–80)
- ₹5 lakh (for age 80+)
👉 You are legally required to file ITR.
✅ 2. If You Want to Claim a Refund
If TDS (tax) was deducted from your salary or bank interest, and your actual tax payable is less — you must file ITR to get a refund.
✅ 3. If You Earn Income from Freelancing or Business
Even if it’s online, home-based, or part-time — filing ITR is mandatory if your income exceeds the threshold.
✅ 4. If You Have Foreign Assets or Income
You must file ITR regardless of income limit if you:
- Hold foreign bank accounts
- Own foreign property or investments
- Are an NRI with Indian income
✅ 5. If You Want to Apply for a Visa or Loan
Most embassies and banks require at least 2–3 years of ITR as proof of income for:
- Visa processing
- Home or business loans
✅ 6. If You’re a Company, LLP or Firm
All companies and LLPs (even if there’s no income or profit) must file ITR.
✅ 7. If You Had Capital Gains
Sold a property, shares, mutual funds, or crypto?
You must declare it in your ITR—even if tax is already paid or exempt.
📂 Which ITR Form Should You Use? (Simplified)
| Form | Who Should Use It? |
|---|---|
| ITR-1 | Salaried individuals with income ≤ ₹50L |
| ITR-2 | Capital gains, foreign income, more than one property |
| ITR-3 | Business or professional income |
| ITR-4 | Presumptive business/freelancers (Section 44AD/ADA) |
⚠️ Penalties for Not Filing ITR
- Late fees up to ₹5,000 under Section 234F
- Interest on unpaid tax
- Trouble with loans, visas, or tax notices
💡 Why File ITR Even if Not Mandatory?
✔️ Easy access to loans, credit cards
✔️ Acts as income proof
✔️ Helps claim tax refunds
✔️ Builds financial credibility
