Introduction to ITR Filing 2025-26

As the financial year 2025-26 approaches, it's crucial for taxpayers in India to stay informed about the latest income tax return (ITR) filing requirements. One of the most common questions that arises is, "What is the minimum income to file an income tax return in India?" In this comprehensive guide, we will delve into the minimum income thresholds for ITR filing, explore the different income tax slabs, and provide valuable insights to help you navigate the ITR filing process seamlessly.

Minimum Income Threshold for ITR Filing in India

The minimum income threshold for filing an income tax return in India varies based on several factors, including age and the source of income. Let's break down the key criteria:

For Individuals Below 60 Years of Age

• Gross Total Income: Individuals below 60 years of age are required to file an ITR if their gross total income exceeds ₹2.5 lakh per annum.
• Exceptions: Even if your income is below ₹2.5 lakh, you may still need to file an ITR if you have:
• Deposited an amount or aggregate of amounts exceeding ₹1 crore in one or more current accounts.
• Incurred expenditure of an amount or aggregate of amounts exceeding ₹2 lakh for foreign travel.
• Incurred expenditure of an amount or aggregate of amounts exceeding ₹1 lakh towards electricity consumption.
• Fulfilled certain other conditions specified under the Income Tax Act.

For Senior Citizens (60 to 80 Years)

• Gross Total Income: Senior citizens aged between 60 and 80 years have a higher minimum income threshold of ₹3 lakh per annum for ITR filing.
• Exceptions: Similar to individuals below 60, senior citizens may also need to file an ITR even if their income is below ₹3 lakh, based on the criteria mentioned above.

For Super Senior Citizens (Above 80 Years)

• Gross Total Income: Super senior citizens above 80 years of age enjoy the highest minimum income threshold of ₹5 lakh per annum for ITR filing.
• Exceptions: The same exceptions apply to super senior citizens as well.

Income Tax Slabs for 2025-26

Understanding the income tax slabs is essential for calculating your tax liability accurately. The income tax slabs for the financial year 2025-26 are as follows:

New Tax Regime (Optional)

• Up to ₹3 lakh: Nil
• ₹3 lakh to ₹6 lakh: 5% above ₹3 lakh
• ₹6 lakh to ₹9 lakh: ₹15,000 + 10% above ₹6 lakh
• ₹9 lakh to ₹12 lakh: ₹45,000 + 15% above ₹9 lakh
• ₹12 lakh to ₹15 lakh: ₹90,000 + 20% above ₹12 lakh
• Above ₹15 lakh: ₹1,50,000 + 30% above ₹15 lakh

Old Tax Regime

• Up to ₹2.5 lakh: Nil
• ₹2.5 lakh to ₹5 lakh: 5% above ₹2.5 lakh
• ₹5 lakh to ₹10 lakh: ₹12,500 + 20% above ₹5 lakh
• Above ₹10 lakh: ₹1,12,500 + 30% above ₹10 lakh

Benefits of Filing ITR Even if Income is Below the Minimum Threshold

While filing an ITR may not be mandatory if your income falls below the minimum threshold, there are several benefits to doing so:

• Claiming Refunds: If you have had taxes deducted at source (TDS) but your total tax liability is less than the TDS amount, filing an ITR allows you to claim a refund.
• Carry Forward of Losses: Filing an ITR is necessary to carry forward capital losses or business losses to offset against future income.
• Visa and Loan Applications: Many visa and loan applications require proof of income, and an ITR serves as a valid document for this purpose.
• Building a Financial Profile: Regularly filing ITRs helps in building a strong financial profile, which can be beneficial for various financial transactions.

How to File ITR for 2025-26

Filing your ITR for the financial year 2025-26 is a straightforward process if you follow these steps:

Step 1: Gather Necessary Documents

• Form 16: If you are a salaried employee, your employer will provide you with Form 16, which contains details of your salary and TDS.
• Bank Statements: Collect bank statements for all your accounts to report interest income.
• Investment Proofs: Gather documents related to your investments, such as mutual fund statements, fixed deposit receipts, and insurance policies.
• Other Income Proofs: If you have income from other sources like rent, freelancing, or capital gains, ensure you have the necessary documents to report these incomes.

Step 2: Choose the Right ITR Form

Based on your income sources and the nature of your income, you need to select the appropriate ITR form:

• ITR-1 (SAHAJ): For individuals with income from salary, one house property, and other sources (excluding lottery winnings and racehorses).
• ITR-2: For individuals and Hindu Undivided Families (HUFs) with income from salary, more than one house property, capital gains, and other sources.
• ITR-3: For individuals and HUFs with income from proprietary business or profession.
• ITR-4 (SUGAM): For individuals, HUFs, and firms (other than LLPs) with presumptive income from business and profession.

Step 3: Fill in the Details and Verify

• Online Filing: Visit the official e-filing portal of the Income Tax Department of India and fill in the necessary details in the chosen ITR form.
• Offline Filing: Alternatively, you can download the ITR form, fill it offline, and then upload it on the e-filing portal.
• Verification: After submitting your ITR, you need to verify it. You can do this electronically using an Electronic Verification Code (EVC) or by sending a signed physical copy of ITR-V to the Centralized Processing Center (CPC) in Bangalore.

Common Mistakes to Avoid While Filing ITR

To ensure a smooth ITR filing process, be mindful of these common mistakes:

• Incorrect Personal Details: Double-check your PAN, name, and address to avoid any discrepancies.
• Missing Income Sources: Report all sources of income, including interest from savings accounts, fixed deposits, and other investments.
• Incorrect Bank Details: Provide accurate bank account details to facilitate the processing of any refunds.
• Ignoring Deductions and Exemptions: Make sure to claim all eligible deductions and exemptions to minimize your tax liability.
• Late Filing: File your ITR on time to avoid penalties and interest on unpaid taxes.

Conclusion

Understanding the minimum income threshold for filing an income tax return in India is crucial for every taxpayer. By staying informed about the latest ITR filing requirements, income tax slabs, and the benefits of filing ITR even if your income is below the threshold, you can ensure compliance with tax laws and optimize your tax planning. As you prepare for ITR filing for the financial year 2025-26, make sure to gather all necessary documents, choose the right ITR form, and avoid common mistakes to make the process seamless and hassle-free.

Remember, filing your ITR not only helps you fulfill your legal obligations but also contributes to building a strong financial profile. Stay proactive, stay informed, and file your ITR diligently to enjoy the benefits of being a responsible taxpayer in India.