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Time of India
01-07-2025
- Business
- Time of India
ITR filing FY 2024-25: Why filing Income Tax Return is important even if you have no tax to pay
One key reason to file your ITR, even if you have no taxable income, is the ability to carry forward capital losses for future tax benefits. (AI image) By Surabhi Marwah ITR filing FY 2024-25 (AY 2025-26: As the timeline for filing Income-tax Returns (ITR) approaches (September 15th for this FY, after extension), individuals, particularly those whose income falls below the taxable threshold, as well as Non-Resident Indians (NRIs) who do not earn any income in India, often wonder whether they are required to file a tax return in India. The truth is, filing your return plays a crucial role in various aspects of your financial and legal life. The misconception of 'No Tax = No ITR' A common misconception is - 'If I don't owe any tax, why should I file a tax return?' Let's clarify a fundamental point – the Income-tax Act, 1961 (the Act) requires individuals to file tax returns if their gross total income exceeds the basic exemption limit before claiming deductions . For Financial Year (FY) 2024-25, the threshold under the old tax regime is INR 2.5 lakhs for individuals below 60 years of age (INR 3 lakhs for resident individuals aged between 60 and 80 years, and INR 5 lakhs for resident individuals aged above 80 years), and it is INR 3 lakhs under the new/concessional tax regime. This means that individuals whose income is not taxable on account of claiming the rebate are also required to file tax returns. However, this is just the starting point. There are many other situations where you must file an ITR even if you do not owe any tax or your income is below the exemption limit. This has been further explained below. Also Read | ITR filing FY 2024-25: How can taxpayers switch between old and new income tax regimes? Explained For example, Mr. A, earned INR 2.4 lakhs in FY 2024–25, primarily from pension and fixed deposits in the bank. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Memperdagangkan CFD Emas dengan salah satu spread terendah? IC Markets Mendaftar Undo Despite being below the exemption limit, his bank deducted INR 6,000 as TDS on interest from fixed deposits. Filing an ITR is his only way to claim a refund of this deducted tax. Carrying forward of capital losses One key reason to file your ITR, even if you have no taxable income, is the ability to carry forward capital losses for future tax benefits. It is however imperative to note that carry forward of losses from house property are not allowed under the new tax regime. Imagine you incurred a loss from sale of shares during FY 2024-25. If you do not file your ITR on time, those losses cannot be carried forward to offset future capital gains. Filing your return ensures these losses are offset with future capital gains, making a bad investment year potentially work in your favour later. The importance of foreign asset reporting Another crucial reason to file returns, even with low or no income, is the requirement for foreign asset disclosure for individuals qualifying as Resident and Ordinarily Residents (ROR) in India Such individuals must report their overseas assets under Schedule FA of the ITR forms. Foreign assets such as bank accounts, financial interests, ESOPs allotted under the employer's overseas stock incentive scheme, immovable property are to be reported regardless of the income levels. Failure to do so can lead to penalties under the Black Money Act, 2015 and, even prosecution in some cases. Also Read | ITR e-filing FY 2024-25: What is the benefit of pre-filled ITR forms on the income tax portal? Top points For example, Mr. A and his spouse are joint owners of a foreign property. In this case, both must report the asset in their respective ITRs. This joint ownership requires careful attention to ensure compliance, as failure to report can attract scrutiny from tax authorities. In recent years, global information sharing has increased under the Common Reporting Standard (CRS). ROR receiving foreign remittances or holding foreign assets must ensure compliance with tax regulations. Skipping the filing of ITR to avoid FA reporting is not only risky but can also be questioned. Tax authorities are now equipped with automatic exchange of information mechanisms that provide them with insights into foreign transactions/ foreign assets, leading to notices and requests for information. Therefore, it is crucial for individuals to file their ITRs accurately and on time to avoid penalties and ensure compliance. Widened scope of mandatory ITR filing under section 139(1) of the Act The Act specifies various criteria for mandatory tax return filing. Here are some of the scenarios that require individuals to file ITR, irrespective of their income levels: Depositing more than INR 1 crore in aggregate in a FY in one or more current accounts maintained with a bank or co-operative bank Spending more than INR 2 lakhs in aggregate on foreign travel in FY for self or for others Paying electricity bills exceeding INR 1 lakh in aggregate during the FY Holding assets outside India or being a signing authority on any foreign account during the FY or is a beneficiary to a foreign asset during the FY Claiming exemptions from capital gains under sections 54, 54B, 54EC or 54F of the Act, etc. If you meet any of these criteria, even if your income is below the exemption limit, you are required to file your return. Also Read | ITR filing FY 2024-25: Do you need to file your income tax return if TDS has been deducted? Explained ITR: Your Financial Passport In today's world, ITRs have become essential documents beyond tax compliance. Financial institutions, embassies, and even landlords view your return as a testament to your credibility. If you plan to apply for a visa, especially to countries like the US, UK, Schengen nations, or Canada, you will often need to submit ITRs for the past 2-3 FYs. Not having an ITR could lead to delays or denials. Similarly, loan applications, whether for a home or car, are often assessed based on the income reported in ITRs, even if your bank statements look good. For example, Priya, a freelancer, earned INR 2 lakhs in FY 2024-25. She did not file an ITR, thinking it was not necessary. Later, while applying for a Schengen visa, her application was delayed because she could not submit ITRs from the last two FYs, something consulates often expect, even without taxable income. Also Read | Income Tax Return: What is Form 16? Top things taxpayers should check in this document before filing ITR In conclusion, filing an ITR is more than just a tax obligation; it is a way to establish your financial presence, ensure transparency, claim rightful refunds, and meet compliance requirements in an interconnected world. Whether you are a pensioner with TDS, salaried individual with foreign shares received under an overseas ESOP plan, a student with overseas accounts, or a homemaker planning international travel, your tax return can speak volumes when other documents cannot. Hence, it is essential that you evaluate your situation holistically to determine whether there is a requirement to file a tax return or not. (The author, Surabhi Marwah is Tax Partner, EY India. Ammu Sadanandhan, Director- Tax, EY India and Ojaswita Pathak, Tax Professional, EY India also contributed to the article.) Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. 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India Today
01-07-2025
- Business
- India Today
Why India's ultra-rich love family offices
India's wealthiest families are reshaping the way they manage money. No longer content with informal advisors or fragmented portfolios, the ultra-rich are increasingly embracing family offices—sophisticated, structured setups designed to navigate complexity, reduce risk, and preserve generational wealth with shift is both rapid and dramatic. From just 45 in 2018, the number of family offices in India has grown to nearly 300 by 2024. The rise reflects more than growing fortunes. It points to a more deliberate way of managing wealth—one that is professional, globally oriented, and built to outlast Surabhi Marwah, Partner and Co-Leader of Private Tax at EY India, puts it, 'The Indian family office ecosystem is at an inflection point where wealth preservation alone is no longer enough. Families now seek efficiency, transparency, and global access, all of which require a more structured approach.'FAMILY OFFICES: THE NEW WEALTH COMMAND CENTRES Modern family offices operate more like private financial institutions. They manage much more than investments—handling succession planning, philanthropic giving, tax structuring, and grooming the next generation of leaders. They consolidate sprawling wealth into a single, well-oiled machine, introducing discipline, governance, and offices typically form at major financial milestones: the sale of a business, a significant inheritance, or a major liquidity event. While there's no official threshold, many in the wealth management space consider US$100 million in investable assets a practical baseline. Until then, multi-family office platforms offer an accessible, resource-efficient recent EY–Julius Baer study identifies key motivations behind these setups: protecting assets, managing growing complexity, separating personal finances from business wealth, and addressing intergenerational needs with clarity. (Source: EY-Julius Baer study) Notably, the model is catching on with both legacy families and first-generation entrepreneurs. For the latter—often younger and tech-savvy—family offices offer the flexibility to build personalised investment mandates, maintain privacy, and institutionalise legacy-building from day INDIA'S SUPER-RICH LOVE FAMILY OFFICESIndia is undergoing an intergenerational wealth transfer of historic scale—over $1.3 trillion is expected to pass hands in the next decade. Alongside this, a surge in startup exits, IPOs, and private equity windfalls is creating new liquidity, fuelling demand for bespoke wealth City is also amplifying momentum. With relaxed regulations and cross-border ease, it has become an attractive jurisdiction for setting up efficient, global-facing family offices. Outflows under the Liberalised Remittance Scheme (LRS) reached $31.7 billion in 2023–24, up from $18.8 billion in 2019– PRESERVATION TO GLOBAL BETSNew-age family offices, especially those serving first-generation entrepreneurs, are allocating significantly to high-growth sectors. Over half of the surveyed offices have put more than 25% of their portfolios into emerging bets, with many going beyond 50%.advertisementYet caution remains. Around 57% still allocate less than 10% to private equity or VC, often citing limited access or risk FRICTION AND REGULATORY LANDMINESGlobal ambitions come with complex compliance. Domestic tax policy changes and intricate cross-border rules are becoming key operational hurdles. According to the report, 48% of family offices in India cite tax as a primary concern, with 37% naming regulatory complications manage this, families are leaning on structures like LLPs, private trusts, and GIFT City-based entities. But the tightrope walk between staying compliant and retaining operational flexibility SUCCESSION, FORMALLYSuccession planning has long been a sensitive topic among Indian business families. That's changing. Nearly 60% of families now have formal plans through wills or constitutions. Around 19% have adopted structures like trusts or many remain unprepared. Families are starting to codify roles, draft shareholder agreements, and institutionalise mentorship for the next generation. Digital vaults and encrypted platforms are increasingly being used to store key legal and financial documents—reducing dependence on oral A FAMILY OFFICE TAKES SHAPESetting up a family office involves careful planning—defining intent, identifying legal frameworks, and building the right team. Whether the aim is philanthropy, succession, investment, or a combination, the goals shape whether a single-family or multi-family model fits like LLPs, companies, and trusts enable asset protection and tax efficiency. Governance frameworks clarify decision-making authority and responsibilities. An Investment Policy Statement (IPS) aligns capital deployment with risk appetite. Typically, a family office head manages operations and coordinates with advisors. An investment committee, comprising professionals, family members, or both, drives asset allocation and reviews offices also play a hands-on role in risk management, estate planning, administrative support, and philanthropic initiatives. With younger UHNIs entering the fold, these offices are embracing technology, digital security, and thematic investing like NEXT?The Indian family office is no longer just a sign of affluence. It's becoming a strategic necessity. What started as a tool for preserving wealth is fast turning into a platform for building dynasties, fusing capital with purpose, and governance with portfolios spreading across continents and generations, and families taking on more risk, regulation, and responsibility, the era of DIY wealth management is firmly behind us. The new-age family office is structured, agile, and built to endure, not just market cycles, but generational shifts.- Ends
Entrepreneur
27-06-2025
- Business
- Entrepreneur
India's Family Offices Reach 300 in 2024: Report
While a quarter of these offices still prioritize capital preservation, a broader trend is clear: diversification, global exposure, and intergenerational continuity are now front and centre. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. India's ultra-wealthy are no longer content to quietly preserve their fortunes. According to a new EY–Julius Baer report, The Indian Family Office Playbook, they're embracing risk, going global, and rethinking the way wealth is managed. The country now hosts over 300 family offices, up sharply from just 45 in 2018, and many are stepping beyond traditional investing models. The shift is more than cosmetic. While a quarter of these offices still prioritize capital preservation, a broader trend is clear: diversification, global exposure, and intergenerational continuity are now front and centre. Surabhi Marwah, co-leader of Private Tax and partner at EY India, said: "The Indian family office ecosystem is at an inflection point where wealth preservation alone is no longer enough." Today's family offices, typically formed by high-net-worth and ultra-high-net-worth individuals, are evolving into sophisticated wealth management engines. Their remit stretches beyond financial returns, covering everything from philanthropy and governance to succession planning and international compliance. The result: a model that is more institutional, nimble, and global in ambition. But with opportunity comes complexity. Nearly half of the family offices surveyed cited concerns over shifting tax laws, while 37 per cent flagged challenges around cross-border regulations. These anxieties aren't sidelining global ambitions but are now baked into how portfolios and structures are designed. "Family offices are increasingly catering to first-generation entrepreneurs who are more risk-tolerant and open to emerging sectors," said Umang Papneja, CEO of Julius Baer India. "As the scale and complexity of wealth grow, there's a stronger focus on strengthening governance, growing asset value and planning for legacy succession." Even so, the road to alternatives is being walked carefully. Despite growing interest, 57 per cent of family offices still allocate less than 10 per cent of their holdings to private equity or venture capital. The reasons range from limited access to cautious investment postures, underscoring that while ambition is high, risk appetite remains measured. Another critical area of evolution is governance and succession. The report shows that while 59 per cent of family offices have wills or constitutions in place, only 19 per cent have moved to adopt formal legal structures like private trusts or LLPs. This gap between intent and execution could prove costly as wealth transitions to younger generations. "Preserving and enhancing generational wealth lies at the heart of every family office," said KT Chandy, Partner and Co-leader of Private Tax at EY India. "In the process, they enable seamless succession through structures like private trusts, aligned shareholder agreements, and defined governance roles." Looking forward, several trends are expected to define the next phase of India's family office journey. GIFT City is emerging as a key hub for cross-border structuring and tax efficiency, while ESG investing is aligning portfolios with the values of the next generation. Technology and data are also playing a growing role, especially in risk monitoring and strategic rebalancing.
India Today
27-06-2025
- Business
- India Today
Where are India's ultra-rich families investing in 2025?
India's ultra-wealthy aren't just sitting on their fortunes anymore. In 2025, they're stepping out, investing boldly, and thinking globally. A new EY–Julius Baer report, The Indian Family Office Playbook, reveals that many family offices are moving away from traditional wealth preservation and diving into global markets, private credit, and real offices, typically set up by high-net-worth individuals (HNIs) or ultra-high-net-worth individuals (UHNWIs), help manage everything from global investing and succession to philanthropy and is now home to over 300 family offices—up from just 45 in 2018. And while 25% of them still put capital preservation front and centre, the big picture is clear: diversification is in, and legacy-building is taking centre stage. 'Families now seek efficiency, transparency, and global access—all of which require a more structured approach,' said Surabhi Marwah, Co-leader of Private Tax and Partner at EY India. 'The Indian family office ecosystem is at an inflection point where wealth preservation alone is no longer enough.'So what does this new playbook look like? For starters, family offices are investing across borders, with interest rising in global equities, private equity, venture capital, and real estate. Private credit—once a niche space—is quickly gaining popularity for its steady returns and built-in downside protection. And this global hunger is backed by numbers: under the Liberalised Remittance Scheme, outbound flows jumped from $18.8 billion in 2019–20 to $31.7 billion in 2023– it's not just about chasing returns. Global investing brings its own headaches. The report shows 48% of family offices are worried about shifting tax laws, and 37% are grappling with cross-border rules. These concerns are shaping strategy just as much as the returns themselves.'Family offices are increasingly catering to first-generation entrepreneurs who are more risk-tolerant and open to emerging sectors,' said Umang Papneja, CEO of Julius Baer India. 'As the scale and complexity of wealth grow, there's a stronger focus on strengthening governance, growing asset value and planning for legacy succession.'Interestingly, despite the enthusiasm for alternatives, private markets are still approached with caution. About 57% of family offices allocate less than 10% of their portfolios to private equity or venture capital, often due to limited access or a conservative big area of focus is governance and succession. While 59% of families have created wills or constitutions, only 19% have adopted formal structures like private trusts or LLPs. That leaves many still flying blind when it comes to long-term continuity.'Preserving and enhancing generational wealth lies at the heart of every family office,' said KT Chandy, Partner and Co-leader of Private Tax at EY India. 'In the process, they enable seamless succession through structures like private trusts, aligned shareholder agreements, and defined governance roles.'advertisementLooking ahead, family offices in India are expected to double down on global diversification, formal governance, and smarter portfolio tools. GIFT City is fast becoming a favourite for cross-border structuring and tax efficiency. ESG investing is also on the rise, aligning with the values of next-generation wealth big takeaway is that India's family offices are no longer just quiet keepers of wealth. They're becoming agile, global institutions—built not just for returns, but for long-term impact.- Ends
Indian Express
26-06-2025
- Business
- Indian Express
Family offices diversifying into global equities, private equity: Report
While 25 per cent of Indian family offices set up by business houses continue to prioritize wealth preservation, many are now actively diversifying beyond traditional assets into global equities, real estate, private equity, venture capital, and alternative investments, says a report on family offices/ Allocations are increasingly moving into global equities, real estate, private equity, venture capital, and other alternatives, says the EY-Julius Baer report. While preserving wealth remains foundational, families are actively diversifying beyond traditional assets. With over 300 family offices now operating in India, up from just 45 in 2018, the ecosystem is becoming more structured, globally focused, and purpose-driven, it said. Family offices are going global as ultra-high-net-worth individuals (UHNIs) expand across borders, with Liberalised Remittance Scheme (LRS) remittances rising from $18.8 billion in 2019–20 to $31.7 billion in 2023–24. A family office is a private wealth management advisory firm established to manage the financial, investment, and personal affairs of an UHNI family. It acts like a full-service financial command centre for the family, offering customized solutions that go far beyond what traditional banks or wealth managers provide. There is a growing focus on formalising governance and succession planning among family offices, it said. 'While 59 per cent of families have put wills or constitutions in place, and 19 per cent have adopted structures like trusts or LLPs, a significant number still lack a comprehensive succession plan – highlighting the need for greater preparedness,' it said. It said private markets are yet to see wider adoption among family offices. As many as 57 per cent of family offices allocate less than 10 per cent of their portfolios to private equity or venture capital, often citing limited access or as a cautious approach. 'Regulatory matters are gaining attention among family offices,' the report further said. Changing tax laws were flagged by 48 per cent of respondents, while 37 per cent cited cross-border complexities, the report said. As Indian families expand globally, they are adopting stronger governance, leveraging digital tools, and focusing on long-term impact. 'Key trends include rising cross-border investments, growing use of GIFT City, increased interest in ESG, and hybrid family office models that blend in-house teams with external experts for greater agility,' it said. 'The Indian family office ecosystem is at an inflection point where wealth preservation alone is no longer enough. Families now seek efficiency, transparency, and global access, all of which require a more structured approach. At the same time, navigating tax and cross-border regulatory frameworks is becoming central to how these offices function and plan ahead,' said Surabhi Marwah, Co-leader, Private Tax and Partner, EY India.
