The clock is ticking! The Income tax filing time limit for most taxpayers in India is quickly approaching, coming on July 31. While numerous individuals diligently draft their returns, a particular group living in a specific region might not need to pay income tax based on particular criteria dependent on their socio-economic status, income threshold, and the profession of persons within these communities. Though even for them, the larger question remains: Is submitting an income return (ITR) still recommended? Who is not required to deposit ITR?
Every year, the Income Tax Department of India revises its requirements and regulations for filing Income Tax Returns (ITR). For AY 2025-26 (FY 2024-25), it’s necessary to understand who doesn’t need to file ITR based on their income limits and sources.
In this post, we will elucidate which individuals do not need to file ITR in 2025, and under what situations this exemption is permissible.
Who is Not Required to File an ITR in India?
1. Individuals with Income Under the Taxable Limit
If your total income from all sources is under the basic exemption limit, you do not need to submit an ITR.
Fundamental Exemption Limits (FY 2024-25):
| Category | New Tax Regime | Old Tax Regime |
| Individuals under 60 years | Rs 3,00,000 | Rs 2,50,000 |
| Senior Citizens (60-80 years) | Rs 3,00,000 | Rs 3,00,000 |
| Super Senior Citizens (over 80 years) | Rs 3,00,000 | Rs 5,00,000 |
Example: If a 59-year-old person has a yearly income of Rs 2.95 lakh and does not claim any exemptions or deductions, they do not need to file ITR.
2. Individuals With Only Pension Income or Interest and no TDS
Suppose your income accrues just from savings account interest, pension, or fixed deposits, and no TDS has been subtracted, and your income is inside the exemption limit. In that case, filing ITR is not compulsory.
3. Individuals with just Agricultural Income (Under Limit)
If you possess only agricultural income, and it is under Rs 5,000, you do not need to file an ITR.
Nonetheless, if your agricultural income surpasses Rs 5,000, and your non-agricultural income crosses the basic exemption limit, ITR filing becomes compulsory under the rule of partial integration.
4. Students or Housewives with no Taxable Income
Suppose a student or housewife possesses no taxable income or receives allowances, gifts, or pocket money from family (which are not taxable). In that case, there is no requirement to file an ITR.
5. NRIs with Nil or Minimal Indian Income
Non-Resident Indians (NRIs) who do not get income in India, or whose Indian income is under Rs 2.5 lakh, do not need to file an ITR.
6. Income Only from Savings Interest and Dividends Below Limit
You don’t need to file an ITR if your entire income comes from interest on savings and dividends, and stays under the basic exemption limit.
7. ITR Filing Not Required for Specified Senior Citizens – Section 194P
Section 194P of the Income Tax Act (which came into effect from FY 2021-22) gives a break to some senior citizens (75 years or older) from filing ITR if they meet these conditions:
Eligibility for ITR Exemption under Section 194P:
- The individual is a Resident Senior Citizen aged 75 years or more.
- The senior citizen has filed a declaration with the bank in a recommended form.
- The bank calculates and deducts tax on such income after offering deductions (like 80D, 80C, etc.).
- The bank is a fixed bank notified by the Income Tax Department.
- The elderly person receives interest earnings and pension payments from the same bank.
If all requirements are met, the elderly person doesn’t have to submit an ITR. The bank takes responsibility for taking out the necessary tax.
- Example:
- Mr. Verma, 78 years old, makes:
- Rs 4.9 lakh in pension,
- Rs 1.5 lakh in interest from the same SBI branch,
- Gives Form 12BBA to SBI to calculate deductions and tax
Situations Where ITR Filing is Essential Despite Zero/No Income
Even if your income is under the exemption, you must submit ITR if:
- You are a partner in an LLP or a director in a company
- You spent more than Rs 2 lakh on foreign travel
- TDS Deducted of Rs 25000 or over (Rs 50000 for senior citizens)
- You are claiming a tax refund
- Your electricity bill crosses Rs 1 lakh in a year
- You have deposited over Rs 1 crore in a bank account in a year
- If the Turnover of the business is 60 lakh or over and receipts from the profession are 10 lakh or over
Exemption from ITR filing is available to fixed categories of taxpayers depending on their income amount and type. If you come under any of the above categories and your income is under the threshold, you do not need to file an ITR.
Categories Exempt from Income Tax in India
While the income tax brackets determine the tax amount payable for most persons, there are specific categories that are wholly exempt from paying income tax. Read the undermentioned to discover who is exempted from filing ITR.
Income Tax Exemption for Scheduled Tribes in Ladakh and Northeastern States
Section 10(26) of the Income Tax Act provides a tax exemption benefit to certain residents of the northeastern states and the Union Territory of Jammu and Kashmir, specifically members of the Scheduled Tribes who are residents of:
- Mizoram
- Tripura
- Assam
- Nagaland
- Manipur
- Arunachal Pradesh
Together with these states, the tribals residing in the Ladakh division of Jammu and Kashmir are also exempt.
Exemptions for Individuals in Certain Areas
The Income Tax Act provides, in Section 10(26) tax exemption on certain income in the same way as certain income is exempt from income tax. This exemption pertains to two categories:
Scheduled Tribe Income in Notified Tribal Areas: Residents of a Scheduled Tribe residing in an area defined in the Sixth Schedule of the Constitution are free from income tax or income arising within that area. This exemption extends to income arising from the following types of payments: dividends, interest, or securities. The next few sentences summarise some of the specific areas that are notified as tribal areas:
- Karbi Anglong District (Assam)
- Jaintia Hills District (Meghalaya)
- North Cachar Hills District (Assam)
- Khasi Hills District (Meghalaya)
- Garo Hills District (Meghalaya)
- Bodoland Territorial Areas District (Assam)
Moreover, the complete states of Tripura, Manipur, Mizoram, Arunachal Pradesh, and Nagaland are also exempt. Likewise, the Ladakh region of Jammu and Kashmir is also exempt.
Bottom Line
Filing a nil ITR provides financial protection. Even if you have no taxable income, an ITR acts as evidence of earnings, assists in refund claims, and aids you in preventing future tax complications. A zero ITR filing also strengthens your financial record, so it will be easier to secure visas, loans, and government subsidies.
In addition, it provides tax compliance and prevents excess TDS deduction under Section 206AB. Take a proactive step and file your NIL ITR on time. Small efforts today can protect you from financial woes tomorrow.
