As the September 15 deadline for filing Income Tax Returns ( ITR ) for FY 2024–25 approaches, financial experts are sounding the alarm: don’t fall for misleading online claims suggesting that individuals earning under ₹12 lakh are exempt from filing. This confusion could cost you dearly.
The Myth vs. Reality
The root of the misunderstanding lies in Budget 2025, which proposed a rebate on income up to ₹12 lakh—but this applies only from FY 2025–26 onward. For the current financial year (April 2024 to March 2025), the rebate limit remains ₹7 lakh, and filing is mandatory if your income exceeds ₹3 lakh.
“The ₹12 lakh figure is a rebate, not an exemption,” warns Ritesh Sabharwal, a certified financial planner. “It’s dangerously incorrect to assume you’re exempt this year.”
Who Needs to File?
- Anyone earning more than ₹3 lakh in FY 2024–25
- Individuals with foreign income, capital gains, or multiple income sources
- Freelancers, gig workers, and youth resellers—even if income is irregular
- Those seeking loan approvals, credit cards, or government subsidies in the future
What Happens If You Skip It?
- Penalty up to ₹5,000
- Delayed refunds (if eligible)
- Notices from the Income Tax Department
- Loss of financial credibility—especially for youth and artisans trying to build a digital footprint
What You Need to File
- Form 16 (from employer, if salaried)
- Bank statements
- Income proofs (sales, commissions, freelance work)
- PAN and Aadhaar
- Login to incometax.gov.in to file online
If unsure, consult a chartered accountant or use trusted platforms like ClearTax or TaxBuddy. Don’t rely on WhatsApp forwards or viral YouTube videos that misinterpret the law.
Why Filing Matters—Even If You’re Below ₹12 Lakh
- Builds your financial history for future credit
- Protects you from legal trouble
- Helps claim refunds on TDS or advance tax
- Essential for youth entrepreneurs and artisans seeking recognition, grants, or business loans
Final Word
The Income Tax Department won’t accept “I didn’t know” as an excuse. Filing your ITR is not just a legal obligation—it’s a smart financial move that secures your future.
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