In Budget 2025, Minister of Finance Nirmala Sitharaman made a significant statement. According to her, the income tax rebate under Section 87A of the Income Tax Act was previously only applicable to earnings up to Rs 7.5 lakh. However, the income threshold for this benefit has been raised to Rs 12 lakh from April 1, 2025. People whose annual income is less than Rs 12 lakh will be eligible for this.
Will those with incomes below Rs 12 lakh still be required to submit an income tax return under these circumstances? Is there going to be no tax due from them? We’ll have to see. The short answer is that you still have to file your income tax return (ITR) if you want to get a rebate under section 87A, regardless of whether your income is taxable.
Refunds are available for income up to ₹12 lakh, excluding special tax sources. However, filing an income tax return is required to take advantage of this rebate. This reimbursement will not be available unless you submit your income tax return. In some cases, you must file an ITR despite a low income.
If your bank account has more than Rs 1 crore in overseas assets or has spent more than Rs 2 lakh on foreign travel, you must file an income tax return (ITR) even if your income is less than 4 lakh. You must also submit an ITR if your sales exceed Rs 60 lakh and your electricity bill exceeds Rs 1 lakh.
