ITR filing season: Who is exempted from filing ITR and doesn't pay fine too? Know everything here

Additionally, there is a tax-free state in India. Sikkim is the only state in India whose inhabitants are free from income tax under Article 371(F) of the Indian Constitution and Section 10(26AAA) of the Income Tax Act of 1961. This implies that even if people make crores, the I-T agency does not collect any taxes from them. 

Let's know about these people who are free from paying income tax.

If your earnings are within the income tax exemption limit, then you are exempted from filing ITR according to the Income Tax Department. 

Here, we are talking about your earnings, not the taxable income after taking various types of deductions. If your income exceeds the tax exemption limit, then you must file an ITR.

Under Section 194P, people above 75 years of age are exempted from filing ITR, as per the Income Tax Department. However, it also has some conditions. 

It is important that the senior citizen should be a citizen of India in the previous year. 

Besides, it is also important that the senior citizen's income should be coming from pension income and the interest earned on it by keeping it in the bank. It is also important that the pension comes in the same bank account.

It helps you to get a refund if you have paid a higher income tax than your liability.

Besides, it also helps you to avail of a loan as the lenders may ask for a copy of your ITR filing.