Nil ITR Filing, Income Tax Return: Salaried individuals must mandatorily disclose their yearly income to the Income Tax Department based on the income tax calculation. According to the Income Tax Act 1961, a person below 60 years of age is not liable to pay income tax if his annual income is below Rs 2.50 lakh. Therefore, filing an income tax return (ITR) is also unnecessary. However, it is recommended that every salaried person should file ITR as the document serves as proof of income which every institution accepts.
5 Benefits filed with a nil ITR
- Valid evidence of income
To demonstrate that your annual income is less than Rs 2.50 lakh, a zero ITR must be filed with the Income Tax Department. It is a legal document or a reliable source of income evidence.
Refund of Taxes
It is required to file an ITR when Tax Deducted at Source (TDS) was deducted from a salary during a fiscal year despite exceeding the exemption threshold.
- Beneficial for borrowing
While applying for a home loan, auto loan, personal loan or any other loan, ITRs are considered to be an important document because it has all the necessary details of an individual’s financial status.
4. Setting off loses
If an individual has incurred losses in the stock market loss in a financial year and decides to carry forward the equities holding to the next financial year, filing a nil return becomes mandatory.
5. Applying for a passport or visa
A nil return also is handy for a visa application as income proof is a part of the whole application procedure.
How to file a Nil ITR online
A specific request is not necessary to file a nil ITR; it is identical to filing a regular ITR. To file an ITR, the following papers are required: PAN, Aadhar, bank account, salary information, Form 16, and investment information.
Step 1: Go to the Income Tax Department’s official website and log in using your registered user ID and password.
Step 2: Choose the e-filing option. Describe your income and deductions.
Step 3: An automatic computation of the income tax will take place. It will show that there is no tax owed by you.
The fourth step is to turn in the return to the income tax division. To finish the e-filing procedure, send ITR-V to CPC Bangalore.