Under the new tax regime, if your total income is up to ₹7 lakh, you’re eligible for a rebate, which effectively brings your tax liability to zero. This is when people often think they don’t need to file their taxes because there’s no tax payable.
But here’s the thing: whether or not you need to file your ITR depends on your income level, not how much tax you owe.
The rule is pretty straightforward — if your income exceeds the basic exemption limit, you MUST file your ITR.
What’s the basic exemption limit (BEL)?
The basic exemption limit is the income threshold below which you don’t have to pay income tax or file an ITR.
For FY 2024-25, the basic exemption limits are as follows:
So, if your income exceeds ₹3 lakh in the new regime, you’re required to file your return.
What happens if you skip filing your ITR?
These days, the Income Tax Department (ITD) can track all your income through your AIS and Form 26AS. So, if you miss the deadline and don’t file your ITR, they’ll likely send you a ‘non-filing of ITR’ notice.
These notices typically come after the filing deadline (15th September this year), and if that happens, you’ll face a penalty of:
- ₹1,000 if your income is below ₹5 lakh
- ₹5,000 if your income exceeds ₹5 lakh