New Delhi, June 22 -- The Rs.12 lakh income threshold under the new tax regime has led many taxpayers to believe they have no tax liability and, therefore, no need to file an income tax return.

That is not always the case.

For FY2025-26, resident individuals opting for the new tax regime can claim a rebate of up to Rs.60,000 under Section 87A if their total income does not exceed Rs.12 lakh. The rebate can reduce the tax payable on income taxed under the slab rates to zero.

However, the Rs.12 lakh threshold is a rebate limit, not a blanket exemption from tax. Certain categories of income are taxed under separate provisions of the Income Tax Act and may continue to attract tax even when a taxpayer's total income remains below Rs.12 lakh...