ITR Filing 2025: Do Students And Unemployed Need To File Income Tax Returns in 2025?

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New Delhi:  Income Tax Return (ITR) filing in India depends mainly on your annual income and age. For individuals under 60 years old, it is generally required to file an ITR if your income exceeds Rs 2.5 lakh under the old tax regime or Rs 3 lakh under the new tax regime. However, unemployed individuals and students are not obligated to file if their income stays below these limits.

Even when not mandatory, filing an ITR is advisable for several reasons. It creates a government-backed digital record of your income, which can be useful when applying for loans, credit cards, jobs, or visas. Filing returns also allows you to claim refunds if excess tax has been deducted or paid in advance. Moreover, important financial transactions, such as deposits over Rs 50 lakh in a savings account, require ITR proof to comply with tax scrutiny.

Additionally, filing returns is essential if you want to carry forward capital losses, such as short-term capital losses, which can be offset against future gains for up to eight assessment years, reducing your tax burden in subsequent years.

For the assessment year 2025-26, the last date to file an ITR without penalty has been extended to September 15, 2025. If you miss this, you can still file a belated return until December 31, 2025, but a nominal penalty applies—Rs 5,000 if your income exceeds Rs 5 lakh, and Rs 1,000 if it is lower.

The Income Tax Department offers various ITR forms depending on your income sources, like ITR-1 and ITR-2, and form ITR-3 for those earning from business or professions along with other income such as salary or capital gains.

Filing your ITR is also beneficial for building a clean financial record, which is important for obtaining personal loans, credit cards, and traveling internationally. For students, maintaining a good tax record can ease admission processes in top global institutions, help secure education loans, and qualify for scholarships. The filing process is straightforward, requiring basic documents such as PAN, Aadhaar card, and bank statements.