ITR Filing After Budget 2025: Taxable Income of Rs 12 Lakh and I-T Returns Zero Tax Liability Under New Tax Regime Since 2023
ITR Filing After Budget 2025: Do You Need to File if Your Taxable Income is Rs 12 Lakh?
As the dust settles on Budget 2025, many taxpayers are left wondering about their Income Tax Return (ITR) filing obligations, especially if their taxable income stands at Rs 12 lakh. The introduction of the new tax regime has made understanding tax liabilities somewhat easier, but clarity is still essential.
Understanding the New Tax Regime
The new tax regime, which has been in effect since 2023, aims to simplify the taxation process for individuals. Under this system, the tax slabs have been revised, and many exemptions and deductions have been removed. The most appealing aspect? For individuals earning up to Rs 7 lakh, there’s zero tax liability! But what about those earning Rs 12 lakh?
Tax Liability for Rs 12 Lakh Income
For taxable income of Rs 12 lakh, the tax liability under the new regime is calculated as follows:
– **Up to Rs 2.5 lakh**: No tax
– **Rs 2.5 lakh to Rs 5 lakh**: 5% (Rs 12,500)
– **Rs 5 lakh to Rs 10 lakh**: 10% (Rs 50,000)
– **Above Rs 10 lakh**: 15% (Rs 30,000)
In total, the tax comes to Rs 92,500. After considering the applicable rebates, your total tax outgo remains substantial. Hence, filing ITR is not just a formality; it’s a legal requirement!
Do You Have to File ITR?
Yes, with a taxable income of Rs 12 lakh, you must file your income tax returns. Failing to do so can lead to penalties and interest on unpaid taxes. Remember, even if your tax liability is manageable, filing ITR can open doors to various benefits, including potential refunds and loans.
Maximize Your Tax Benefits with Looffers.com
While navigating the complexities of tax filing, it’s wise to explore platforms like Looffers.com. They provide insightful resources and tools to help you maximize your deductions and understand the intricacies of tax regimes.
In conclusion, whether you’re earning Rs 12 lakh or any other amount, understanding your tax obligations is crucial. Don’t let the numbers intimidate you—get informed, file your ITR, and consider using resources like Looffers.com to ensure you maximize your potential benefits!
