Zero Tax Liability? You Still have to file ITR

With the beginning of the new assessment year 2025-26, taxpayers are urged to file their Income Tax Returns (ITR) on the Income Tax portal. It is essential to submit the relevant forms and declare their financial gains to avoid legal consequences, even if one is exempt from paying taxes.

While few certain groups in India, including those with income below the specified threshold limit, get relief under existing ITR laws, the need to file a return still remains essential. Each individual with income falling under the taxable income and whose accounts are not audited, is obligated to file an ITR to ensure compliance with the tax regulations.

Taxpayers with taxable income whose accounts are not audited must file returns adhering to the regulations. Those earning below the exemption limit may claim a full refund but they must accurately disclose details of their income sources along with valid supporting documents. The department highlights that filing returns is obligatory for all eligible individuals, even if no tax is payable.

Relief for Senior Citizens

Senior citizens aged 75 and above are exempt from filing returns if they can meet specific conditions. Those receiving only pension and interest income from a notified bank can skip annual filings by submitting a declaration (Form 12BBA) to their bank. However, proper documentation is essential to avoid legal complications.

The exemption granted to the senior citizens highlights the importance of understanding tax obligations and processes involved. Adhering to such stipulations is crucial to maintain transparency across the taxation system and also, keeping potential disputes with tax authorities at bay.

Mandatory Disclosure for All

The Indian taxation framework mandates ITR filing for even those whose income is lower than the taxable limit to provide accurate information of their income sources. This practice is important as it’s not a mere legal requirement but it will also help individuals irrespective of their income, compliant to the taxation law in India.

According to the Income Tax Department, tax-exempt individuals filing their returns should claim applicable refunds. This practice can help avoid any further legal repercussions. Failure to file ITR returns essential taxation terminology and thus accurate ITR filing is crucial for the eligible taxpayers.