Respected Sir I m a retired person I have only income from F&O trading Mutual funds & trading of ETFs & my total income is less than 2.5 lakhs so do I have to file Income tax return or I can skip the return. please reply my thank you

Ans: Yes, you need to file returns using ITR 2. The long term capital gain is subjected to income tax @ rate of 10%+Surcharge/Cess, post 1 lakh of gain and considering grandfathering rule.  One can also claim the basic exemption.

Ans: Individual is required to file ITR if gross income exceeds 2.5L (Before 54 exemption) OR if deposits in current account is more than 1 Cr OR Expense are more than 2 L for Foreign Travel OR if Expense are more than 1 L for Electricity OR Sales is more than 60 L OR if Gross receipt profession exceeds 10 L OR if TDS/ TCS deducted is more than 25K ( 50K senior citizen) OR if Deposit are more than 50 L in Saving A/c.

In case non of the conditions are fulfilled, person may not file ITR.

Ans: Income tax Return is required to be filed only if you have 'income' and simply doing an investment is not a criteria till you have an income. And if that yearly income is less than Rs 2.5 Lakhs a year under old regime and less than Rs 7 Lakhs a year under new tax regime, even then you may not be required to file the ITR subject to Income Tax rules

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