As per the budget announcement, there is no tax on income below 12L next year onwards. My salary for next year would be around 10 lakh, so my tax liability will be zero. Do I have to file my ITR in this case?
Hello @Diksha ,
The zero tax on income below ₹12 lakh is due to the rebate under Section 87A and not because the tax rate itself is zero up to ₹12 lakh.
Since your income (₹10 lakh) is above the basic exemption limit (BEL), you are required to file your ITR, even though your final tax liability will be zero.
What is the Basic Exemption Limit (BEL)?
The basic exemption limit is the income threshold below which an individual isn’t required to pay income tax or file an ITR.
Here are the BELs for FY 2025-26:
If your total income is below the BEL, you generally don’t need to file an ITR, except in a few special cases. You can read about those exceptions here.
For incomes above the BEL, ITR filing is mandatory even if your effective tax is zero after considering:
- Deductions
- Allowances
- TDS/TCS credits
- Rebate under Section 87A (Learn more about it here)
What happens if you don’t file the ITR?
If you skip filing your ITR, the Income Tax Department may send you a notice for ‘non-filing of ITR’ based on the transactions visible in your AIS or 26AS.
These notices usually arrive after the 31st July due date, and you will have to pay a late filing fee,
- ₹1,000 if your income is below ₹5 lakh
- ₹5,000 if your income is above ₹5 lakh
So, even though your tax liability is zero, make sure to file your ITR to avoid any hassles and penalty.