ITR Filing 2026: No Tax Liability? File Your ITR Anyway—Otherwise, You Could Miss Out on These Benefits. – informalnewz
ITR Filing 2026: Even if your income does not attract any tax liability, filing an ITR is still mandatory. It facilitates TDS refunds, assists with loan and visa applications, and strengthens your financial records. Otherwise, you could miss out on numerous benefits. Get the details here.
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ITR Filing 2026: Many salaried individuals think that if their income is below the taxable limit, they don’t need to do anything. Neither do they have to pay taxes nor file an ITR. But the reality is not so simple.
TDS can be deducted in many everyday situations, whether it’s salary, bank interest, fixed deposits, or small freelance earnings. If you don’t file your ITR, you won’t get this deducted money back. This means that even in situations where there’s no tax, your money could be stuck.
ITR is not just a refund
Filing your ITR isn’t just for getting a refund; it’s a record of your entire financial profile. It provides proof of income, builds credibility for loans and visas, and systematically records all your transactions. Since most transactions are tracked these days, not filing your ITR can create problems later.
People make these mistakes
The biggest mistake people make is thinking, ‘If there is no tax, there is no need to do anything.’ This is why they don’t file their ITR and miss out on refunds for TDS deducted on fixed deposits, salary, or freelance income.
For example, if the annual interest on a fixed deposit (FD) exceeds ₹50,000, the bank deducts a TDS of 10%. If a PAN is not provided, this can be as high as 20%. In such cases, the excess tax can be reclaimed by filing an ITR.
Another common mistake is not filing your ITR on time. This prevents you from getting the benefit of setting off losses from investments in stocks or mutual funds in subsequent years.
What to keep in mind while filing ITR
The ITR provides a complete picture of your financial situation, so providing accurate information is crucial. To do this, keep your ITR form, salary slips, PAN, Aadhaar, bank account details, and proof of investments and deductions. Also, be sure to reconcile Form 26AS (Form 168) with your Annual Information Statement (AIS) to ensure no errors and a speedy refund.
New tax regime rules
Under the new tax regime, income above Rs 4 lakh is taxed:
5% on Rs 4-8 lakh
10% on Rs 8-12 lakh
15% on Rs 12-16 lakh
20% on Rs 16-24 lakh
If your annual income exceeds ₹2.4 million, a 30% tax is levied. However, after a rebate under Section 87A, income up to ₹1.2 million can be tax-free. For salaried individuals, this limit reaches ₹1.275 million after a standard deduction of ₹75,000.
What is the benefit of the old tax regime?
The old tax system offered benefits under sections 80C, 80D, 80TTA, and allowances like DA, HRA, and LTA, but the tax rates were higher.
There is no tax up to Rs 2.5 lakh, 5% tax on Rs 2.5-5 lakh, 20% tax on Rs 5-10 lakh and 30% tax above Rs 10 lakh.
Is it necessary to file ITR?
If your income is above the basic exemption limit and falls within the tax bracket, it’s mandatory to file an ITR, even if your final tax liability is zero. This is because the tax liability is often due to rebates and deductions, rather than because your income is outside the tax bracket.
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