return to news
  1. Upstox
    /
  2. News
    /
  3. Personal Finance News
    /
  4. Tax
    /
  5. Not filing ITR because income up to ₹12 lakh is tax-free? This myth can cost you your refund

Personal Finance News

Not filing ITR because income up to ₹12 lakh is tax-free? This myth can cost you your refund

rajeev kumar
By Rajeev Kumar

3 min read | Updated on September 11, 2025, 08:01 IST

Twitter Page
Linkedin Page
Whatsapp Page

SUMMARY

Income Tax Return due date 2025: Many taxpayers are under the impression that there is no tax up to ₹12 lakh. Hence, they do not need to file a return. But this is wrong and dangerous as well for taxpayers.

itr filing 2025 myth

Don't wait till ITR filing deadline. File as soon as possible. | Image source: Shutterstock

Even as only five days are left before the end of the Income Tax Return filing due date for AY 2025-26, many taxpayers are still waiting on the sidelines. While some seem to be expecting another deadline extension, many others are falling prey to a very dangerous myth doing the rounds.

According to Cleartax, many taxpayers are under the impression that there is no tax up to ₹12 lakh. Hence, they do not need to file a return. But this is wrong and dangerous as well for taxpayers.

"This tax season, there’s a dangerous myth doing the rounds: 'No tax if your income is under ₹12 lakh," Cleartax said in a mail to its users.

What is the truth?

Taxpayers are currently required to file ITR for FY 2024-25 (AY 2025-26) if their annual income is above the basic exemption limit, which is only ₹3 lakh in the new tax regime and ₹2.5 lakh under the old regime.

In the current tax-filing season, income up to ₹7 lakh is tax-free under the new tax regime. However, this may not include income from selling stocks and mutual funds as they are taxed at special rates (Read the reasons here).

The deadline to file ITR is September 15.

If you do not file your return, you may end up losing a valid income tax refund that you may be eligible for. Moreover, you may also end up facing higher tax and other complications later.

The tax rebate on up to ₹12 lakh income will apply when filing income tax returns next year, not in the current year. However, you will be required to file an ITR even if your income is below ₹12 lakh but above ₹4 lakh under the new regime.

Returns filed till now

According to the Income Tax Department's e-filing portal, 5,30,07,987 returns have been filed as of September 10, 2025, which is approximately 16 lakh more than the 5,13,71,090 returns filed as of September 9, 2015. Of the 5.3 crore returns filed, taxpayers have verified over 4.99 crore returns, while the Income Tax department has processed more than 3.57 crore verified returns.

On September 9, nearly 16.3 lakh returns were filed. Around 8 crore taxpayers are estimated to file their returns in 2025. This means that over 2.5 crore returns are still pending as of September 15, 2025. In FY 2024-25, 7.28 crore returns were filed up to the July 31 deadline.

ELSS
Find the best tax-saver funds for 2025.
promotion image

About The Author

rajeev kumar
Rajeev Kumar is a Deputy Editor at Upstox, and covers personal finance stories. In over 11 years as a journalist, he has written over 2,000 articles on topics like income tax, mutual funds, credit cards, insurance, investing, savings, and pension. He has previously worked with organisations like 1% Club, The Financial Express, Zee Business and Hindustan Times.