Income Tax Return (ITR) for Everyone: As Simple As Your Piggy Bank Story

Imagine you have a big piggy bank where you collect money throughout the year — from gifts, doing chores, selling old toys, or anything else. At the end of the year, your parents ask you, “How much money did you collect? Where did it come from? And did you spend any of it?” Now, think of the government as someone like your parent — they want to know how much money you earned during the year. So, they ask you to fill out a special form that tells them everything: how much you earned, where it came from (like your job, business, or bank interest), and how much tax you paid. This special form is called an Income Tax Return, or ITR for short. Just like sharing your piggy bank record with your parents helps them trust you, sharing your income record with the government helps show that you’re honest and following the rules. If you paid more tax than needed, the government may even return the extra money — like a bonus!

So, simply put: 👉 ITR is a form you submit to the government to tell them how much money you made, how you made it, and how much tax you paid. It’s like doing your homework for your money.

🧾Who Needs to File ITR for AY 2025–26? Let’s Keep It Simple

💼 Riya’s Tax Tale: Filing ITR Not All About Taxonomies

When March 2025 rolled around, Riya, a 32-year-old graphic designer in Mumbai, sipped her coffee and pulled out her laptop. The time had come to do taxes again. She was unsure if it was necessary to file an ITR. After all, she didn’t owe any tax — so who needed it, anyway?

Let’s take a stroll with Riya as she recounts her experience — and perhaps you can figure out what to do next.

👩‍💼 Chapter 1: The Crossroads of the Income Threshold

Riya found out that if your gross total annual income exceeds certain levels, filing an ITR isn’t optional but mandatory.

If you are below 60, you have to file if you earn over ₹2.5 lakh.

Between 60 and 79? The bar is ₹3 lakh.

80 and above? You need to file only if you earn more than ₹5 lakh.

Even if Riya was not being taxed after deductions, her gross total income exceeded the basic exemption. So yes, she had to file.

🏢 Chapter 2: The Business Backstage

Riya’s friend Arjun, was a small startup — it hadn’t generated any profits yet. “I can’t file, can I?” he asked.

Well, seems like any registered business — whether it’s for profit or not — needs to submit an ITR. Be it private limited company, partnership and LLP there cannot be a ditching of this rule under any circumstance.

💸 Chapter 3: The Refund That Wasn’t Coming

Riya recalled that TDS used to be deducted by her bank on fixed deposit interest. “Wait, I paid more tax than I should have.

In order to get that extra money back, she’d have to file a return. Filing is essential not just to pay tax but also to claim those refunds.

🌍 Chapter 4: The overseas twist

As she filed, Riya was taken aback: If you’re a resident Indian and own a foreign bank account, or investments, a property or signing authority abroad, you are expected to report it — regardless of whether your total income is below the threshold limit.

Fortunately, Riya had no outstanding liabilities, but we were in no mood for a reminder that international connections come with tax obligations.

📉 Chapter 5: The Loss You Can’t Erase

“I lost some money this year trading stocks,” Arjun wrote. “If I make profit can I change next year?”

Only if he filed his return before the deadline. Otherwise, the loss would just vanish from the records.

Filing on time lets you carry forward certain losses, especially in business and capital gains.

🧳 Chapter 6: The NRI Angle

Riya's cousin Priya, who lives in Dubai, gets rent from her flat in Bangalore.

Despite Priya's NRI status, she needs to file a return if her Indian income exceeds ₹2.5 lakh — because the rule applies to income from Indian sources, not just to residents.

👨‍💻 Chapter 7: Stock Options & Startup Dreams

Riya's tech-savvy friend Sahil received Employee Stock Options (ESOPs) from his startup employer.

He put off paying tax on those shares under a special rule. But here's the thing: He still had to file a return — just to report the tax liability he postponed.

🛂 Chapter 8: More Than Just Numbers

As she read on, Riya understood that ITRs mean more than just tax and following rules.

Filing an ITR can help you get a home loan, make your visa application faster, or boost your profile for government programs and bids.

It's not just paperwork. It shows you're trustworthy.

⏳ Chapter 9: The Final Countdown

Riya circled a date on her calendar: July 31, 2025 — the last day to file her return for the financial year 2024–25.

If you miss it, you might face late fees, lose refunds, and have no chance to carry forward losses.

✅ Riya Filed Her Return — Should You?

By the end of the week, Riya filed her ITR — not because someone forced her to, but because she realized how much it mattered.

Whether it’s about refunds, future plans, or just being financially responsible, filing your ITR is more than a rule — it’s a smart move.