Clarifying Income Tax Return Filing: Requirements for Salaried Taxpayers

Filing Income Tax Returns (ITR) is a mandatory obligation for individuals and serves as a crucial aspect of financial record-keeping. For the financial year 2025-26, the basic exemption limit for individual taxpayers below the age of 60 is set at Rs 2.5 lakh under the old income tax regime. In contrast, the new income tax regime offers a higher exemption limit of Rs 4 lakh.

Under the old regime, taxpayers can claim various deductions and exemptions available under different sections of the Income Tax Act, which can reduce their taxable income. The new regime, however, simplifies the tax structure by lowering tax rates but removes many of these deductions and exemptions.

It is vital for individuals to remain informed about these limits and choose the tax regime that best suits their financial situation to optimize their tax liability. Ensuring timely and accurate filing of ITR helps maintain compliance with statutory requirements and can facilitate easier access to loans and other financial services.