Archive · 18 Jul 2026
ITR Filing 2026: Zero Tax Liability After Section 87A Rebate
Even if your tax bill is zero after getting a rebate under Section 87A, you might still need to file your income tax return.
The rebate only reduces the tax you owe, but you still have to file a return if your income is above a certain limit.
For the year 2025-26, if your income is up to ₹12 lakh, you can get a rebate that makes your tax zero.
But you still need to file a return if your income is above the basic exemption limit, which is ₹2,50,000 for most people.
If you don't file on time, you might have to pay a penalty.
So, it's important to file your return even if you don't owe any tax.
Filing ITR is mandatory if income exceeds the basic exemption limit, even after Section 87A rebate.
Section 87A rebate is available for taxable income up to ₹12 lakh for financial year 2025-26.
Basic exemption limit is ₹2,50,000 for individuals below 60, ₹3,00,000 for senior citizens, and ₹5,00,000 for super senior citizens under the old regime.
Under the new tax regime, the basic exemption limit is ₹4,00,000 for all individuals.
Late filing of ITR attracts a penalty under section 234F of the Income Tax Act.
- Who
- Individual taxpayers in India.
- What
- Filing of income tax returns (ITR) even if tax liability is zero after Section 87A rebate.
- When
- For the financial year 2025-26 (Assessment Year 2026-27).
- Where
- India.
- Why
- To comply with tax laws, claim refunds, carry forward losses, or maintain proof of income.
- Section 87A Rebate
- Tax rebate for eligible individual taxpayers under the new tax regime.
- Basic Exemption Limit (Old Regime)
- ₹2,50,000 for individuals below 60, ₹3,00,000 for senior citizens, ₹5,00,000 for super senior citizens.
- Basic Exemption Limit (New Regime)
- ₹4,00,000 for all individuals.
- Taxable Income for Rebate
- Up to ₹12 lakh for financial year 2025-26.
- Standard Deduction (New Regime)
- ₹75,000 for salaried individuals.
- Standard Deduction (Old Regime)
- ₹50,000 for salaried individuals.
- Late Filing Penalty (Income ≤ ₹5 lakh)
- ₹1,000 if filed before 31 December.
- Late Filing Penalty (Income > ₹5 lakh)
- ₹5,000 if filed before 31 December.