ITR filing: Does a taxpayer with income below Rs 12 lakh have to file IT returns after Budget 2025? The Finance Ministry has clarified that this zero tax liability applies only to the new tax regime, which has been the default since 2023. To benefit from this change, individuals only need to file.
ITR Filing: Do You Need to File IT Returns if Your Income is Below Rs 12 Lakh After Budget 2025?
The recent Budget 2025 has stirred conversations among taxpayers, especially those with incomes below Rs 12 lakh. The Finance Ministry has clarified a significant point: the zero tax liability now applies exclusively to the new tax regime, which has been the default since 2023. So, do you still need to file your Income Tax Returns (ITR)? Let’s break it down.
Understanding the New Tax Regime
Under the new tax regime, individuals with an income below Rs 12 lakh can enjoy the benefit of a zero tax liability. This is great news for many taxpayers, as it simplifies the tax filing process and reduces the financial burden.
Filing ITR: A Must or Not?
Even if your income is below Rs 12 lakh and falls under the zero tax bracket, it is essential to file your ITR. Why? Filing ITR not only keeps you compliant with tax regulations but also opens doors to various benefits. For instance, it can be crucial when applying for loans or visas, where proof of income is often required.
Benefits of Filing Your ITR
1. Loan Applications: Financial institutions often require ITRs as proof of income.
2. Carry Forward Losses: You can carry forward losses to offset future tax liabilities.
3. Refunds: If TDS has been deducted from your income, filing an ITR is necessary to claim a refund.
How to Simplify Your ITR Filing?
To make the process seamless, consider using platforms like Looffers.com. They provide easy-to-use tools and resources to help you navigate your ITR filing effortlessly, ensuring you meet all compliance requirements while maximizing your benefits.
Conclusion
In conclusion, while the zero tax liability is a fantastic update, it does not exempt you from filing your ITR. Embrace the new tax regime, file your returns, and reap the benefits of financial clarity and compliance. For more insights and assistance, visit Looffers.com today!
