{"id":5131,"date":"2026-02-18T22:04:19","date_gmt":"2026-02-18T16:34:19","guid":{"rendered":"https:\/\/tradebrains.in\/money\/?p=5131"},"modified":"2026-02-18T22:04:22","modified_gmt":"2026-02-18T16:34:22","slug":"7-lakh-annual-income-should-you-file-itr-under-old-or-new-tax-regime","status":"publish","type":"post","link":"https:\/\/tradebrains.in\/money\/7-lakh-annual-income-should-you-file-itr-under-old-or-new-tax-regime\/","title":{"rendered":"\u20b97 Lakh Annual Income: Should You File ITR Under Old or New Tax Regime?"},"content":{"rendered":"\n
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Synopsis: <\/strong>It might be confusing as to whether an individual should file an Income Tax Return, when the annual income equals \u20b97 lakh, especially when the liability to tax turns to zero under the new regime. This article identifies the tax regime disparities, compares the calculations of tax, and the reason why ITR filing is still relevant, and mandatory despite the differences in tax results.<\/em><\/p>\n<\/blockquote>\n\n\n\n

The Government of India levies income tax on the income earned by individuals and entities during a financial year. In case of salaried persons, the tax rate is computed according to prescribed tax slabs which stipulate the tax rate to be imposed on various amounts of income. As reforms have been incorporated in the system of taxation, taxpayers are now being given the choice of two tax regimes: the old tax regime<\/strong> and the new tax regime<\/strong> each having its own structure of slab and how deductions and exemptions are to be treated.<\/p>

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In the previous tax system, taxable income can be reduced by the taxpayer through a number of deductions including under Section 80C investments, health insurance premiums under Section 80D and house rent allowance (HRA). Conversely, the new tax regime has reduced rates of the tax slabs but limits the majority of deductions and exemptions. Also rebates, like section 87A, are very influential in the tax payment that an individual will end up paying. <\/p>\n\n\n\n

In the case of people whose annual income is 7 lakh rupees, the combination of tax slabs, rebates and the preferred type of tax regime may lead to confusion on whether they are required to submit an Income Tax Return (ITR). Although in some situations liability to tax might be eliminated, the necessity to file a return is determined by certain provisions to the law and income limits.<\/p>