Income Below ₹2.5L? You May Still Owe an ITR
Many Indians think earning below ₹2.5 lakh means no ITR needed. Not always true. From TDS refunds to visa applications, filing your return is often smarter — and sometimes mandatory — even at low incomes.
Skipping ITR costs more than 3 months of chai — ₹5,000 late fee bites
Your income below this limit still needs an ITR in 7 situations
Key Takeaways
Check your Form 26AS on the Income Tax portal to see if any TDS was deducted — if yes, file an ITR to claim your refund.
File voluntarily even if income is below exemption: it creates an official income record needed for home loans, visas, and credit cards.
Avoid missing the July 31 deadline — a late filing fee of ₹1,000 to ₹5,000 applies even if your final tax payable is zero.
Many Indians think earning below ₹2.5 lakh means no ITR needed. Not always true. From TDS refunds to visa applications, filing your return is often smarter — and sometimes mandatory — even at low incomes.
Here's what happened: The basic income tax exemption limit is ₹2.5 lakh for individuals below 60 years under the old regime.. Despite zero tax liability, ITR filing is compulsory if TDS was deducted, foreign assets held, or deposits exceed ₹1 crore in a year.. The new tax regime raises the rebate threshold to ₹7 lakh, but mandatory filing rules remain separate from the exemption limit..
What you should do: Check your Form 26AS on the Income Tax portal to see if any TDS was deducted — if yes, file an ITR to claim your refund.. File voluntarily even if income is below exemption: it creates an official income record needed for home loans, visas, and credit cards.. Avoid missing the July 31 deadline — a late filing fee of ₹1,000 to ₹5,000 applies even if your final tax payable is zero..
Filing a nil return costs you nothing but builds a 3-year income trail that lenders and visa officers trust more than bank statements alone.
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- [1]“Income tax return: Can you skip ITR filing if your income is below the exemption limit? check rules here” mint - money · 9 Jun 2026
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