Who Must File Taxes in India?

When it comes to tax filing in India, the legal requirement to submit an income tax return based on income, residency, and business activity. Also known as income tax return filing, it’s not just about earning money—it’s about meeting specific thresholds set by the Income Tax Department. Many people assume if they’re not rich, they don’t need to file. That’s a myth. Even if your income is below ₹5 lakh, you might still be required to file if you’ve earned from multiple sources, sold property, or claimed tax deductions.

NRI tax status, the classification of non-resident Indians based on days spent in India per financial year. Also known as residential status for tax purposes, it directly affects whether your global income is taxable in India. If you’re an NRI who stayed more than 182 days in India last year, you’re treated as a resident—and now your worldwide income is subject to Indian tax. That’s why tracking your days matters more than you think. Similarly, GST filing, the process of reporting sales and claiming input tax credit under India’s Goods and Services Tax system. Also known as business tax compliance, it’s mandatory for businesses with annual turnover over ₹20 lakh (₹10 lakh in special states). Even if you’re not earning salary income, running a side gig, freelancing, or selling online? You likely need to register for GST and file returns.

Then there’s the question of capital gains, the profit you make when you sell assets like property, shares, or mutual funds. Also known as investment gains tax, it triggers tax filing even if your salary is low. Selling a mutual fund for a profit? That’s taxable. Renting out a property? That’s taxable. Even if you didn’t get a Form 16 from your employer, you still need to report this. And if you’ve received interest from fixed deposits, gold loans, or crypto sales? Those show up in your AIS (Annual Information Statement), and the tax department already knows.

It’s not just about income—it’s about what you do with it. Claiming deductions under Section 80C? You need to file to prove it. Got a refund coming? You won’t get it unless you file. Want to apply for a loan or visa? Many institutions ask for the last three years of tax returns. Filing isn’t optional if you want to play the long game with your money.

Below, you’ll find real guides from Indian taxpayers who’ve been there—whether they’re NRIs checking their stay limits, freelancers figuring out GST, or investors wondering if their mutual fund gains need reporting. No fluff. Just what actually triggers the requirement to file—and what happens if you skip it.