Even if your tax is zero after claiming the rebate under Section 87A, you may still have to file your ITR.
Nidhi | Aug 21, 2025 |
Do I Need to File ITR if My Tax Liability is Nil?
Income Tax Return (ITR) Filing is not just about paying taxes, but it is also about declaring your income. It is not a burden but a responsibility of all taxpayers to stay compliant with the law. If your income is above the basic exemption limit, then you are required to file an ITR. However, many Taxpayers skip ITR filing, thinking that they have no tax to pay. But the truth is that, even if your tax is zero after claiming the rebate under Section 87A, you may still have to file your ITR.
As mentioned earlier, ITR filing is mandatory if your income is more than the specified limit. The tax rebate under Section 87A is given only when you file your ITR. So even if your income is eligible for the rebate, your tax will not be considered zero until you actually file the return and claim it.
The requirement of ITR filing depends on your income and which tax regime you are opting for. If you are filing a return under the old tax regime, then you must file the ITR if your income is more than Rs 2.5 Lakh. However, under the new tax regime, ITR filing is required if the income is above Rs 3 lakh. So, if your total income (before deductions) is above these limits, you must file your ITR, even if your final tax payable is zero.
Section 87A is a tax rebate offered to eligible taxpayers that aims to reduce the tax liability of taxpayers. The rebate limits under section 87A (before standard deduction) are as follows:
The ITR filing offers the following benefits for taxpayers:
If an eligible taxpayer does not file ITR on time, they will have to face penalties and a Late Filing Fee (Sec 234F) of up to Rs 5,000 for filing a belated return. After the deadline for filing a belated return (usually 31st December of the AY), only an ITR-U (updated return) can be filed, but you may need to pay additional interest.
All the eligible taxpayers whose income exceeds the basic exemption limit must file ITR even if their tax liability is zero after the rebate under section 87A. The rebate just reduces your tax liability and does not remove your filing responsibility. Taxpayers still have to file ITR before the ITR due date ends.
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