Kindly guide, my son is 19 years old, in college. Is there any mandatory requirement for him to file Zero Income Tax? My understanding is that only when he starts earning salary , he needs to file income tax. We have opened one bank account for him for college /hostel expenses, and my husband wants his full year bank statement to file Zero Income Tax return, which I feel is not necessary at all. I don't want my son to get involved in income tax matters etc., when not needed at this stage. Kindly guide. Thank you.

Ans: Non resident is liable to file ITR in India if income is more than exemption limit.

Further, an individual has to file his ITR irrespective of their income level, for cases like :

- If an individual has deposited more than Rs 1 crore or Rs 50 lakh in one or more current and savings bank accounts, respectively.
- If an individual has incurred an expenditure exceeding Rs 2 lakh for himself or any other person for foreign travel.
- Has incurred an expenditure exceeding Rs 1 lakh toward electricity payment in a year.
- Is a beneficial owner or beneficiary of any asset outside India.
- Is a signatory to a foreign bank account.

Ans: Dear Nagaraju,

I understand your concern. As per the Income Tax Act in India, if your total income in a financial year does not exceed the basic exemption limit of Rs 3 lakh for senior citizens (60 years to below 80 years of age), then you are not required to file income tax returns.

However, if your total income, including the income of your children that you are dependent on, exceeds this limit, then you would be required to file a return.

I hope this helps.

Best regards,

Ans: Hello;

Let us wait for the new income tax act supposed to be tabled in parliament next week.

However generally people below 4 L annual income may not file tax returns but it becomes essential sometimes to:

1. Claim TDS refund

2. Report capital gain transaction and tax liability on account of the same.(This is not exempted)

3.Report any other income which may or may not be exempt.

Best wishes;

Ans: You’re 65, have no pension, and earn around Rs 4.5 lakh annually through bank interest and annuities. You have filed ITR until last year. Now you're asking if filing returns is mandatory given the new Budget provision making income up to Rs 12 lakh tax-free under the new regime.

Let’s assess your situation thoroughly.

? Age and applicable exemption limit
– You are a senior citizen (age 60–79).
– Under the old tax regime, income up to Rs 3 lakh is exempt.
– Under the new tax regime, the basic exemption limit is Rs 4 lakh for all individuals.

? New tax exemption and rebate rules
– The Budget 2025 provides rebate under Section 87A for income up to Rs 12 lakh.
– This rebate makes your final tax liability zero.
– But to claim this rebate, you must file your income tax return.

? When return filing is mandatory
Even if income is below taxable limits, return filing is compulsory in these cases:

You want to claim a refund or rebate.

You have any capital gains during the year.

You deposited more than Rs 50 lakh in a year.

Your electricity bill is above Rs 1 lakh annually.

You hold any foreign asset or earn foreign income.

You want to carry forward previous losses.

In your case, since rebate brings tax to zero, return filing is required to claim this benefit.

? Are you eligible for auto?exemption from filing?
– Section 194P gives exemption to super senior citizens above 75 years.
– It applies only when income is from pension and interest from the same bank.
– You are 65, so this clause does not apply.

? Summary of your situation

– Your total income is Rs 4.5 lakh.
– Your final tax liability is zero under the new regime.
– But return filing is still mandatory to claim the rebate.
– You do not qualify for automatic filing exemption.

? Filing process and compliance

– Use ITR-1 if your income is only from pension and interest.
– If you have capital gains or more complex income, use ITR-2.
– Declare total income, then claim deduction under Section 87A.
– File by the due date, which is 15 September 2025.
– After this, you’ll receive an acknowledgment from the Income Tax Department.

? What happens if you don’t file?

– Even with no tax due, not filing may lead to compliance issues.
– You may get notices or lose refund/rebate benefits.
– It’s always safer to file the return properly and on time.
– It protects you from future tax complications.

? Final insights

– You have managed your post-retirement income quite well.
– Though income is below the Rs 12 lakh rebate level, ITR filing is essential.
– This helps claim rebate and remain compliant.
– Since you’re under 75, you cannot rely on automatic filing exemption.
– Filing now gives peace of mind and prevents future issues.
– Make sure to file ITR using the right form before the deadline.

Wishing you continued financial clarity and comfort in your golden years.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment