Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
The general rule
If your total income is below the basic exemption limit — ₹2.5 lakh (old regime) or ₹4 lakh (new regime) for FY 2025-26 — you are generally not obliged to file a return. Confirm the current limits per the Finance Act.
Why filing anyway helps
A ‘nil’ or low-income return is still useful: it lets you reclaim TDS that was deducted (on a fixed deposit, say), carry forward capital or business losses for future set-off, and creates a clean proof of income for visas, loans and credit cards. Many people file voluntarily for these reasons.
When it's actually compulsory
The law requires a return even below the limit in specified situations — for example depositing over ₹1 crore in current accounts, spending over ₹2 lakh on foreign travel, paying over ₹1 lakh in electricity, holding foreign assets, or where TDS/TCS crosses a threshold. Example: a student with ₹1 lakh income but a foreign bank account must file. Confirm the current mandatory-filing triggers. We can check whether you must file.