ZERO Income Tax on ₹24 Lakhs as a Professional in FY 2025-26? Not so fast. Let’s break it down
29
Apr
There are many viral claim going around that if you're a professional, you can earn ₹24 lakhs and pay zero tax this year. While it’s partly true, here’s what you really need to know:
🔹 This is for FY 2025-26 (starting 1 April 2025).
🔹 Under Section 44ADA, professionals can declare 50% of their gross receipts as income. So for ₹24 lakhs → ₹12 lakhs is taxable.
🔹 This would be possible only if you have no other income.
⚠️ However:
👉 Any additional income (rent, interest, dividends, capital gains etc.) will increase your tax liability and may also make to ineligible for Tax rebate ending up increasing your tax bill.
👉 Even with zero tax, filing ITR is mandatory if your total income exceeds ₹3 lakhs.
📌 For reference, in FY 2024-25, you could earn ₹14 lakhs, declare ₹7 lakhs income, and pay zero tax after rebate.
Bottom line?
Don’t blindly trust viral tax advice. Understand the assumptions behind it. Reachout to us at Fintaxcraft.com in case you need professional consultancy.
