ITR Filing: Mandatory Even if Income Below ₹12 Lakh?

Post Budget 2025, taxpayers earning up to ₹12 lakh may still need to file an Income Tax Return (ITR) to claim rebates. The limit for zero-tax income has been increased to ₹12 lakh under the new tax regime but only after claiming a rebate under Section 87A. Individuals with income up to ₹4 lakh are not required to file ITR. But to avail Section 87A rebate, reporting an ITR is mandatory in case of earners between ₹4 lakh and ₹12 lakh.

ITR filing is also required if you satisfy specific conditions like having the current account deposits above ₹1 crore, incurring foreign trip expenses above ₹2 lakh, or electricity consumption above ₹1 lakh. Non-filing can lead to penalties and interest on dues.

Source: Economic Times