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Mandatory ITR Filing Rules in India for FY 2025-26: Important Cases You Must Know

ITR filing is not only based on income limits. Learn the latest mandatory ITR filing rules for FY 2025-26, including foreign assets, bank deposits, TDS/TCS limits, foreign travel expenses, and business turnover conditions.

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ITR filing rulesmandatory ITR filingFY 2025-26income tax Indiaforeign assetsTDS limitsavings bank depositsbusiness turnoverprofessional receiptstax compliance

Mandatory ITR Filing Rules in India You Should Know for FY 2025-26

Many taxpayers assume that Income Tax Return (ITR) filing is required only when income exceeds the basic exemption limit. However, under Indian income tax rules, filing an ITR can become mandatory even when taxable income is below the exemption threshold.

Here are the important situations where ITR filing is compulsory for FY 2025-26.

Foreign Assets or Foreign Accounts

ITR filing is mandatory for Resident and Ordinarily Resident (ROR) individuals who have:

  • Foreign assets
  • Foreign bank accounts
  • Signing authority in any foreign account
  • Beneficial interest in assets located outside India

This rule applies even if total income is below the basic exemption limit.

Current Account Deposits Above ₹1 Crore

If aggregate deposits in one or more current accounts exceed ₹1 crore during the financial year, ITR filing becomes compulsory.

This condition mainly affects businesses, traders, and individuals handling large transactions.

Foreign Travel Expenses Above ₹2 Lakh

An individual must file an ITR if expenditure on foreign travel exceeds ₹2 lakh during the financial year.

This includes travel expenses incurred for:

  • Self
  • Family members
  • Any other person

Electricity Consumption Above ₹1 Lakh

If electricity consumption expenses exceed ₹1 lakh in a financial year, ITR filing is mandatory.

High-value utility expenses are considered an indicator of financial capacity by the Income Tax Department.

Business Turnover Above ₹60 Lakh

Individuals carrying on business must file an ITR if total sales, turnover, or gross receipts exceed ₹60 lakh during the year.

This requirement applies even if taxable profits are low or nil.

Professional Receipts Above ₹10 Lakh

Professionals such as doctors, lawyers, consultants, architects, freelancers, and other service providers must file an ITR if gross professional receipts exceed ₹10 lakh in a financial year.

TDS or TCS of ₹25,000 or More

ITR filing is mandatory if aggregate TDS or TCS during the financial year is ₹25,000 or more.

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

Savings Bank Deposits of ₹50 Lakh or More

If aggregate deposits in savings bank accounts are ₹50 lakh or more during the financial year, filing an ITR becomes compulsory.

This includes deposits across all savings accounts held by the taxpayer.

Conclusion

The Income Tax Department has expanded the scope of mandatory ITR filing beyond income limits. Foreign asset ownership, high-value banking transactions, large expenditures, and substantial business or professional receipts can trigger compulsory filing requirements even when income is below the basic exemption limit.

One important clarification is that foreign asset disclosure requirements mainly apply to Resident and Ordinarily Resident individuals. Taxpayers should review these conditions carefully to avoid penalties, notices, or compliance issues.

For official guidance, refer to the Income Tax Department of India.