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Under the brand-new earnings tax obligation routine, a basic reduction of Rs 75,000 is likewise readily available
Tax specialists claim that income tax return declaring responsibilities are based upon earnings degree and out the tax obligation responsibility. (Representative picture)
In a significant alleviation to the commoner, Union Finance Minister Nirmala Sitharaman on Saturday revealed that individuals with earnings of as much as Rs 12 lakh will certainly not need to pay a solitary rupee in earnings tax obligation.
Finance Minister Sitharaman provided her 8th successive Union Budget on Saturday, bringing delight to the center course.
“To taxpayers with as much as Rs 12 lakh of regular earnings (leaving out unique price earnings such as funding gains), a tax obligation refund is being supplied along with the gain from piece price decreases, making sure that no tax obligation is payable by them,” FM Sitharaman said in her Budget speech.
Further, under the new income tax regime, a standard deduction of Rs 75,000 is also available. With the introduction of this change, salaried individuals with an annual income of up to Rs 12.75 lakh will have zero tax liability under the new tax regime.
But will they, along with others with no tax liability, be required to file an income tax return (ITR)?
ITR filing is mandatory for individuals whose income exceeds the basic exemption limit, which is Rs 2.5 lakh under the old tax regime and Rs 4 lakh under the new tax regime.
Furthermore, tax experts say that tax return filing obligations are based on income level and not on the tax liability. In other words, even if a taxpayer’s liability comes down to zero due to rebates or deductions, they must file an ITR, reflecting their zero tax liability.
Filing ITR helps in maintaining a clean financial record and can be beneficial in securing loans, visas, or other financial services.
