Can you stop filing ITR if your income is below Rs 12 lakh? The Budget 2025 has raised the threshold of rebate available under Section 87A from Rs 25,000 to Rs 60,000. The basic income exemption limit was also increased to Rs 4,00,000. However, those with
Can You Stop Filing ITR If Your Income Is Below Rs 12 Lakh?
In a significant move, the Budget 2025 has introduced changes that could impact many taxpayers in India. The threshold for the rebate available under Section 87A has been raised from Rs 25,000 to Rs 60,000, and the basic income exemption limit has increased to Rs 4,00,000. But what does this mean for you, especially if your income is below Rs 12 lakh?
Understanding the Income Tax Rebate
If your taxable income is below Rs 4,00,000, you won’t need to pay any income tax due to the rebate under Section 87A. For those earning between Rs 4,00,000 and Rs 12 lakh, the effective tax liability can still be minimized significantly thanks to the enhanced rebate. However, you may wonder whether you can skip filing your Income Tax Return (ITR) altogether if your income falls below this threshold.
Filing ITR: A Legal Requirement
The short answer is: no, you cannot simply stop filing ITR if your income is below Rs 12 lakh. The Income Tax Department mandates that individuals with a gross income exceeding Rs 2.5 lakh must file an ITR. This means even if your income is less than Rs 12 lakh and qualifies for a rebate, you are still required to file your returns.
Benefits of Filing Your ITR
Filing your ITR has numerous advantages beyond just compliance. It can help you maintain a record of your income, claim refunds, and serve as a necessary document for loans or visa applications. Moreover, it sets the stage for future tax benefits and helps you avoid penalties.
Get Help with Your Tax Returns
Navigating the tax landscape can be tricky, but you don’t have to do it alone! Looffers.com is here to assist you with your tax-related queries. Whether you need help filing your ITR or understanding the latest tax laws, our expert team is ready to help simplify the process for you.
In conclusion, while the new budget changes offer significant relief, remember that filing your ITR is not just about tax liability—it’s a vital step in ensuring your financial health. Don’t miss out on the benefits of filing your return, and reach out to Looffers.com for assistance today!
