Low Interest Income
Are you a homemaker investing in fixed deposits and mutual funds from your savings? If your interest income from FDs and RDs is below ₹2 lakh, here’s what you need to know about filing Income Tax Returns (ITR).

Based on Basic Exemption Limit
As per the Income Tax Act, filing an ITR is mandatory only if your total income exceeds the basic exemption limit — currently ₹3 lakh under the new tax regime and ₹2.5 lakh under the old regime.

Interest Income Rule
If your interest income is below ₹2 lakh and there are no realised capital gains from mutual funds, filing an ITR is not mandatory. However, filing a voluntary “nil return” is strongly recommended.

Financial Benefits
Filing a “nil return” helps create a formal financial record, which can be useful when applying for loans, visas, or other financial documentation.

TDS Refunds
Filing an ITR allows you to claim a refund for any TDS deducted by the bank on fixed deposits or savings interest.

A Regular Process
Regular ITR filing improves financial tracking and makes future compliance and investment processes smoother.

A simple and clear summary

📌 Key Takeaways

• If your total income (including FD interest) is below ₹3 lakh (new tax regime) or ₹2.5 lakh (old regime), filing ITR is NOT mandatory.
• So, if your interest income is below ₹2 lakh and you have no other taxable income or capital gains, you don’t need to file ITR.

✅ However, experts strongly recommend filing ITR (even if not required):

• 📄 Creates financial record – helpful for loans, visas, etc.
• 💰 Claim TDS refund – if bank deducted tax on FD interest
• 📊 Better financial tracking – useful for future investments & compliance

💡 Conclusion

Even if your income is low and ITR is not compulsory, filing a “nil return” is a smart financial habit.

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