Archive · 14 Aug 2025
ITR Filing Debate: Zero Tax on ₹20 Lakh Income Legal?
Someone on Reddit asked if it's okay to pay zero taxes on a ₹20 lakh income using a special tax plan.
This plan lets professionals, like lawyers, say only half their income is taxable.
The person was asking if this was allowed and if it was 'cheating' the government.
Experts said the plan is legal, but under the new tax rules, you would still owe some taxes on an income of ₹20 lakh.
So, it's not a way to completely avoid paying taxes.
A Reddit post sparked a debate about the legality of zero income tax on a ₹20 lakh income filed under ITR 4.
The post, by 'Mayand69', questioned how an advocate could potentially have zero tax liability.
The query involved an advocate using the presumptive income scheme (Section 44ADA).
Under this scheme, professionals can declare 50% of their gross receipts as income.
Experts clarified that under the new tax regime, tax liability won't be zero for a ₹20 lakh income.
- Who
- A Reddit user ('Mayand69') and tax experts.
- What
- A debate about the legality of potentially paying zero income tax on a ₹20 lakh income using ITR 4.
- When
- During the ITR filing season.
- Where
- On Reddit and in news related to ITR filing.
- Why
- To understand if it's possible and legal to reduce income tax liability to zero on a ₹20 lakh income under the new tax regime using the presumptive income scheme.
Reddit User Concern
Expert Clarification
Legality and Fairness
Reddit User Concern
Concerned about the potential for zero tax liability, viewing it as potentially unfair.
Expert Clarification
Legal under specific conditions such as those defined in section 44ADA.
- Subject
- ITR Filing
- Income Amount Discussed
- ₹20 lakh
- ITR Form
- ITR 4
- Relevant Section
- 44ADA
- Professional Type
- Advocate