What is the Nil Income Tax Return: File Nil ITR

Tax season can be daunting, especially if you’re new to the working world or haven’t had much income. But what if you had zero taxable income? While filing an Income Tax return (ITR) might seem unnecessary, there’s a concept called Nil Income Tax Return that holds potential benefits you might not be aware of.

In this blog, we’ll dive into the world of Nil ITR filing, explaining who’s eligible, the process involved, and the surprising advantages it can offer. So, even if your bank account isn’t overflowing, keep reading to learn why Nil ITR filing could be a smart move for your financial future.

What is Nil Income Tax Return?

If your income is less than INR 2.5 lakhs, you have no tax burden and are exempt from paying income tax. When you are not subject to a tax bracket, you are not required to file an income tax return, but you are free to do so. Nil Income Tax Return is the name given to such an income tax return.

You can inform the income tax authority that you have no taxable income for that particular fiscal year by filing a Nil return. Filing NIL returns has several benefits, even though you are not required to file such a return.

Advantages of filing Nil Income Tax Return

Crossing a task off your list is not the only thing involved in filing a Nil income tax return. The following is a summary of some advantages of filing ITRs, or more precisely, NIL income tax return:

  • When requesting a visa, one may be required to provide income tax returns.
  • ITRs and Assessment Orders are accepted by passport applications as legitimate proof of address.
  • To determine eligibility, loan applicants need copies of ITRs as supporting documentation. Even if you might assume in July that you don’t require a loan, you never know what will occur in November. Having your documentation on hand is preferable to having to pay a fine later.
  • Tax Deducted at Source (TDS) may be subtracted by banks from your interest on deposits. To get your money back, you’ll need to submit an ITR.
  • If you have performed freelance or consulting work for an organization, TDS may be subtracted from your payment. If you are not in the tax bracket, your sole option to get a refund is to file an ITR.
  • If you fail to file your income tax return, Section 206AB requires TDS at rates that are greater than the regular prescribed rates.
  • Unlike any previous year, your income in a given year may be less than INR 2.5 lakhs. Keeping track chronologically will be facilitated by filing an ITR.
  • Even if your income is less than the INR 2.5 lakh level, you still need to file an ITR if you own foreign assets.
  • You can only carry forward stock market losses if you submit ITRs regularly.
ITR Filing service in Bangalore

How can I file an online NIL Return?

Filing a NIL income tax return follows the same steps as filing other ITRs. On the Income Tax Department website, adhere to the same process.

The process was outlined for your convenience:

  • Keep the following documents close at hand: form 16, PAN, Aadhar, salary information, bank account details, and TDS details.
  • Go to the ITR filing page or webpage of the income tax department.
  • Type in your user ID, which is usually your PAN or Aadhar number. You will be redirected to the following screen after entering your login ID.
  • Type in your passcode.
  • Select “Forgot password” if you are unable to recall your password. When you select “forgot password”.
  • a. Your user ID will need to be entered once more.
  • b. Option to reset password can be chosen;
    • Receive an OTP on the phone number linked to your Aadhar account. 
    • Upload the Certificate of Digital Signature Certificate (DSC).
    • Employ OTP for e-filing.
  • c. You’ll be asked to reset your password after validation.
    • Choose the e-filing choice.
    • Provide your income information and, if any, investment amounts.
    • The amount of TDS deducted will be displayed; you can verify this using the Annual Information Statement or 26AS form.
    • The income tax will be automatically calculated and appear to be zero.
    • Send in the refund.
    • Submit a signed copy of the Income Tax Return Verification (ITR-V) form or E-Verify.

Advantages of filing ITRs

  • ITRs could be needed to apply for a visa.
  • Applications for passports accept Nil Income Tax Return as acceptable proof of address.
  • ITR is needed as supporting documentation to determine eligibility for loan applications.
  • TDS may be subtracted by banks from deposit interest.
  • A TDS refund can be requested by submitting a zero ITR.
  • A few companies may withhold the TDS from individuals who work as independent contractors or consultants when paying them. When they are not subject to a tax bracket, they must file a zero ITR to receive a TDS refund.
  • Even if an individual’s income falls below the threshold, they still need to file an ITR.


In conclusion, filing a Nil Income Tax Return, even with no taxable income, goes beyond just ticking the box. It shows financial responsibility, builds a credit history, and opens doors for future opportunities. While the process might seem intimidating, the resources available and the potential benefits make it worthwhile. Remember, a Nil ITR today can pave the way for a smoother financial journey tomorrow.

Take advantage of this opportunity, and don’t hesitate to consult a tax professional at 24efiling if you have any questions.

1. What is a Nil Income Tax Return?

A Nil Income Tax Return, also known as a Nil ITR, is a document filed with the Income Tax Department in India that declares you have no tax liability for a specific financial year. This occurs when your taxable income falls below the basic exemption limit set by the government.

2. Who should file a Nil ITR?

While not mandatory, filing a Nil ITR is recommended for individuals with income below the taxable limit (INR 2.5 lakh for FY 2023-24). It’s also beneficial for those starting their careers, claiming tax refunds, or building a credit history.

3. Are there any situations where a Nil ITR is mandatory?

Even with low income, a Nil ITR might be compulsory if you have high expenses (foreign travel exceeding INR 2 lakh), foreign assets or bank accounts, or are a director in a company.

4. What documents do I need to file a Nil ITR?

While no specific documents are required, having your PAN card and bank statements handy can streamline the process.

5. Is there a separate form for Nil ITR?

No, you use the same ITR form as everyone else. The system recognizes your income and categorizes it as a Nil return.

6. How can I file a Nil ITR? 

You can e-file your Nil ITR through the government’s income tax portal. Several resources and tutorials are available online to guide you through the process.

7. What is the due date for filing a nil Income Tax Return? 

For every Assessment Year, Individuals should file a nil return before July 31st. The due date for filing a nil Income Tax Return is the same as a normal return. However, it will be considered a belated return, if the nil return is filed after the due date.

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