Budget 2025 Income Tax : In the Union Budget 2025-26, Finance Minister Nirmala Sitharaman said that under the new tax system, there will be no tax on income up to Rs 12 lakh.
That is, taxpayers will not have to pay tax on annual income up to Rs 12 lakh. After this announcement, salary class taxpayers are wondering whether they will now have to file Income Tax Return (ITR)? Will such employed people whose annual income is up to Rs 12 lakh have to file ITR? Know the details here
Do I have to file ITR for income up to Rs 12 lakh?
According to the budget announcements, there will be no income tax on income up to Rs 12 lakh. But filing ITR is still necessary. If your annual income is more than Rs 4 lakh, then you will have to file ITR i.e. Income Tax Return.
New Tax Regime – New Tax rate FY 2025-26
| Income Tax Slab | Income Tax Rate |
| 0 – Rs 4,00,000 | Nil |
| Rs.4,00,000 to Rs.8,00,000 | 5% |
| Rs 8,00,001 to Rs 12,00,000 | 10% |
| Rs 12,00,001 to Rs 16,00,000 | 15% |
| Rs 16,00,001 to Rs 20,00,000 | 20% |
| Rs 20,00,001 to Rs 24,00,000 | 25% |
| Above Rs 24,00,001 | 30% |
What are the benefits of filing ITR?
Even if you do not have to pay any tax, filing income tax returns is important for many reasons. Filing returns is necessary to claim refund on excess TDS deduction. ITR is required as a financial record to apply for a bank loan or visa. It helps in carrying forward losses for the future and availing tax benefits.
Who is required to file ITR?
If your income is less than Rs 12 lakh, but you are involved in capital gain, foreign income, or foreign business, then it is necessary for you to file ITR.
New and old tax system: Which one is better for you?
New Tax Regime : It has lower tax rates but no exemptions or deductions are available.
Old Tax Regime: It offers more tax exemptions and deductions, but the tax rates are higher. The new tax system has become the default tax regime from FY 2023-24. If you do not choose any tax regime, your tax will be calculated under the new tax regime. Currently, taxpayers have the right to choose between the new and old tax regimes.
Why is it necessary to file ITR?
Filing ITR is not just a legal formality, but it helps you in financial and future planning. Filing ITR on time keeps you financially secure and legally strong.
