10 Reasons Why ITR Filing Is Mandatory in 2025 | Income Tax Rules You Must Know

Income Tax Return (ITR) filing is mandatory in 10 key situations, including foreign income, high bank deposits, and electricity bills. Know the rules and file before 31st July 2025.

🧾 10 Situations Where ITR Filing Is Mandatory in 2025 | Don’t Miss the July 31 Deadline!

Filing your Income Tax Return (ITR) is more than just a compliance requirement—it helps you maintain a clean financial record, unlock loan approvals, and claim TDS refunds. For the financial year 2024–25 (AY 2025–26), the Income Tax Department has listed 10 specific conditions under which ITR filing becomes mandatory, even if your income is below the basic exemption limit.

🚨 Last date to file ITR for FY 2024–25 is July 31, 2025.

In this article, we’ll explain each of the 10 scenarios where you must file ITR and actionable tax-saving insights.

✅ Who Must File ITR in 2025? 10 Mandatory Situations Explained

Let’s break down the 10 key conditions where ITR filing is compulsory, even if you think your taxable income is within limits.

1️⃣ Gross Total Income Exceeds Basic Exemption Limit of ₹3 Lakhs

If your gross total income (before deductions under Section 80C to 80U) exceeds:

• ₹3,00,000 for individuals below 60 years

• ₹5,00,000 for senior citizens (60–80 years)

• ₹5,00,000 for super senior citizens (80+ years)

👉 You are mandatorily required to file ITR.

2️⃣ You Have Income From Outside India

If you are a resident Indian with foreign income (like foreign salary, rental income, capital gains, or investments), you must file ITR—even if it’s below taxable limits.

This includes interest earned on foreign bank accounts, stocks, mutual funds, or foreign assets.

3️⃣ Deposits Over ₹1 Crore in Bank Account

Depositing ₹1 crore or more in one or multiple bank accounts (current or savings) during a financial year makes ITR filing mandatory.

💡 This is to prevent unexplained cash transactions and increase tax transparency.

4️⃣ Foreign Travel Expenses Over ₹2 Lakhs

If you’ve spent more than ₹2,00,000 on foreign travel (either for yourself or others), you are required to file ITR regardless of your income.

The government uses this criterion to track high-value luxury expenses.

5️⃣ Electricity Bill Exceeds ₹1 Lakh Per Annum

If your annual electricity bill is more than ₹1,00,000, ITR filing is mandatory. This includes residential and commercial properties.

6️⃣ Business Turnover Above ₹60 Lakhs

Any business entity or individual having a gross turnover above ₹60,00,000 in a financial year must file ITR.

This applies even to small traders, e-commerce sellers, or service providers.

7️⃣ Professional Receipts Over ₹10 Lakhs

If you are a freelancer, doctor, CA, consultant, or lawyer with gross receipts exceeding ₹10,00,000, then ITR filing is mandatory.

This helps ensure compliance among self-employed professionals.

8️⃣ TDS Deducted ≥ ₹25,000 in a Year

If your TDS (Tax Deducted at Source) is ₹25,000 or more in a financial year, you must file ITR—even if your net income is below the exemption limit.

For senior citizens, the TDS threshold is ₹50,000.

9️⃣ TCS Collected ≥ ₹50,000

If your Tax Collected at Source (TCS) during the financial year exceeds ₹50,000, then it’s mandatory to file your income tax return.

This usually applies to luxury goods/services, foreign remittances, and high-end items.

🔟 Saving Bank Deposit of ₹50 Lakhs or More

A new rule mandates ITR filing if the aggregate deposits in savings accounts across all banks exceed ₹50 lakhs in a financial year.

This is to monitor high-net-worth individual (HNI) banking activity.

📅 ITR Filing Due Date for AY 2025–26

🔔 Last date to file ITR for FY 2024–25 is July 31, 2025, unless extended by the government.

Late filing may lead to:

• Penalty under Section 234F (₹1,000 to ₹5,000)

• Interest under Section 234A/B/C

• Loss of refund claim eligibility

💡 Benefits of Timely ITR Filing

1. Faster TDS Refunds

2. Loan & Credit Card Approvals

3. Visa Applications

4. Avoidance of Notices & Penalties

5. Proof of Income for Financial Transactions

6. Carry Forward Business Losses

🧠 Who Can Help You File ITR?

If you’re unsure whether you fall under any of the above categories, consider consulting a CA or income tax expert. Alternatively, platforms like ClearTax, TaxBuddy, or government’s e-filing portal can help.

✍️ Don’t Wait Till the Deadline

If any of these 10 conditions apply to you, filing ITR is not optional—it’s mandatory. Missing the deadline can result in hefty penalties, missed refunds, or legal issues.

🎯 Plan, Prepare & File Your ITR by July 31, 2025 for a stress-free financial year.