New Delhi, February 2: In a welcome move for the middle class, Union Finance Minister Nirmala Sitharaman announced in her eighth consecutive Union Budget that individuals with incomes up to INR 12 lakh will not have to pay any income tax. This announcement brings significant relief, especially to salaried individuals.
Under the new income tax regime, a standard deduction of INR 75,000 is also available, meaning those with an annual income up to INR 12.75 lakh will have zero tax liability. Income Tax Slabs 2025: Nil Tax for Individuals Earning up to INR 12 Lakh Annually Under New Regime, Says FM Nirmala Sitharaman.
However, the question arises—do these individuals still need to file an Income Tax Return (ITR)? The answer is yes. Filing an ITR is mandatory for individuals whose income exceeds the basic exemption limit, which is INR 2.5 lakh under the old tax regime and INR 4 lakh under the new tax regime. This obligation exists regardless of whether the final tax liability, after deductions and rebates, amounts to zero. Budget 2025: 1 Crore More People To Pay Zero Income Tax Under Union Budget 2025-26, Says Finance Minister Nirmala Sitharaman.
Tax experts say that the requirement to file an ITR is based on income level and not on the tax payable. Even if taxpayers benefit from the new rebates and their tax dues drop to nil, they are required to file an ITR. This process is crucial for maintaining a clean financial record.
Filing an ITR has its benefits—it serves as proof of income, which is often required for loan applications, visa processing, and other financial services. It also helps the government keep track of financial activities, contributing to transparency in the economy. So, while the tax relief is substantial, the responsibility of filing an ITR remains.
(The above story first appeared on Today News 24 on Feb 02, 2025 11:54 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website todaynews24.top).
