Zero Tax Due? You Still Must File ITR in 5 Cases
Section 87A rebate can wipe out your tax bill completely, but that does NOT mean you can skip filing your ITR. Here's when zero tax still means you must file — and what happens if you don't.
Skipping ITR to save 30 mins can cost you ₹5,000 in penalties later — that's 200 cups of chai
Your income up to this is tax-free — but you may still legally owe an ITR
Key Takeaways
Check your gross income — if it crosses ₹3 lakh (new regime) or ₹2.5 lakh (old regime), file your ITR even if you owe zero tax.
File before July 31, 2025 to avoid a ₹5,000 late fee under Section 234F — don't assume zero tax means no deadline.
Use ITR filing to claim TDS refunds, carry forward capital losses, and build a financial record for future loan or visa applications.
Section 87A rebate can wipe out your tax bill completely, but that does NOT mean you can skip filing your ITR. Here's when zero tax still means you must file — and what happens if you don't.
Here's what happened: Under the new tax regime, individuals earning up to ₹12 lakh pay zero tax after the Section 87A rebate of ₹60,000.. But 'zero tax payable' is NOT the same as 'no obligation to file' — the ITR filing threshold is based on gross income, not tax due.. If your total income exceeds ₹2.5 lakh (old regime) or ₹3 lakh (new regime), you are legally required to file an ITR — even if your final tax liability is nil..
What you should do: Check your gross income — if it crosses ₹3 lakh (new regime) or ₹2.5 lakh (old regime), file your ITR even if you owe zero tax.. File before July 31, 2025 to avoid a ₹5,000 late fee under Section 234F — don't assume zero tax means no deadline.. Use ITR filing to claim TDS refunds, carry forward capital losses, and build a financial record for future loan or visa applications..
Even if your employer deducted zero TDS, file your ITR anyway — lenders, landlords, and foreign embassies treat your ITR as proof of income. Missing it can delay a home loan by months.
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- [1]“ITR filing 2026: If your tax liability is nil after Section 87A rebate, should you still file a return?” mint - money · 18 Jul 2026
This article is reported by GoCredit's Editorial Team based on the source above. GoCredit synthesises, contextualises, and adds India-borrower-relevant analysis. We are not the original publisher.