e-File Nil Income Tax Return

Nil Income Tax Return is a return filed when income earned during the year is below the basic exemption limit(INRs. 2,50,000). As per the Income Tax Act, ITR filing is not mandatory for individuals earning less than INR. 2,50,000. However, if a return is filed then it will be considered as Nil return.

Due Date file Nil Income Tax Return

Individuals can file a Nil Tax Return on or before 31st July of the Assessment Year. The Due date for Nil Income Tax Return is the same as a regular return. If Nil return is filed after the due date it will be considered as a belated return. However, no late filing fees will be charged.

Note: Due to Covid-19 the due date to file ITR for FY 2019-20 (AY 2020-21) is extended to 31st December 2020 (in case tax audit is not applicable).

Methods to File Nil Income Tax Return

Nil Return is filed in the same manner as a regular return. One can file Nil return in following 3 ways:

• Income Tax e-Filing Account
  • Log in to your account on the Income-tax e-filing website, and prepare and file a return.
  • Prepare your return offline through Income Tax Utility and file return from your login on the e-filing website.
  • File your Income Tax Return (ITR) through an ERI like Quicko,

  

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  What are the benefits of filing a Nil Tax Return?

  • Proof of Income: ITR serves as a proof of income of an individual for a particular financial year. It is considered as a valid income proof by the financial institutions while applying for a loan and it is also helpful while applying for a foreign country visa.
  • To claim Refund of TDS: In case if any TDS is deducted on your interest income then the same can be claimed as refund by filing a Nil return.
  • Avoid notices from IT Department: It is always a good practice to file a tax return then receiving notice from the IT Department. Tax Department sends Non-filers notice to taxpayers who do not file their tax returns. Hence it is better to file nil return then receive a tax notice.
  • To Carry forward losses: To carry forward the losses of business to next financial year ITR filing is mandatory. Hence, it is good practice to file a tax return.

  

  ITR for NIL Income

  CA Assisted Income Tax Return filing for Individuals and HUFs having income less than the basic exemption limit (INR 2,50,000).

  [Rated 4.8 stars by customers like you]

  

  ITR for NIL Income

  CA Assisted Income Tax Return filing for Individuals and HUFs having income less than the basic exemption limit (INR 2,50,000).

  [Rated 4.8 stars by customers like you]

  FAQs

  Is it mandatory to file nil Income Tax Return (ITR)?

  It is mandatory to file the income tax returns online for all the registered taxpayers whose taxable income. However, paper returns can be filed by those who are above 80 years of age and do not have any income from regular business or profession.

  Is 234F applicable for nil return?

  No, fees u/s 234F shall not be applicable in your case if your income is below exemption limit or nil and you are filing the belated income tax return.

  Do I have to file a nil Income Tax Return (ITR) if my income is below INR 2.5 LPA?

  It is recommended that an individual file NIL return, even if the taxable income is less than INR 2.5 Lakhs.

  Got Questions? Ask Away!

  HarshitShah says: Hey @TeamQuicko Can you tell me about ITD’s new ITR filing utility for AY 2021-22? Yesha says:

  

  Hey @HarshitShah To improve the tax filing process, the Income Tax Department has decided to do away with the excel and java-based utility and has launched a new offline JSON-based utility for the AY 2021-22. The new utility will help taxpayers import prefilled data and edit it before filing the income tax return (ITR). The taxpayers can download the pre-filled data from the income tax e-filing portal and fill in the rest of the data. This imported prefilled data can be edited to change basic information such as address and all. Currently, the utility can be used to file ITR1 to ITR 4. ITD has also released a step-by-step guide to using the utility. Hope this helps!

  Amitabh_Verma says: Is it possible to file ITR online without an account on the Income Tax e-filing portal? Niraj says: What should be done in case of discrepancies in actual TDS and TDS credit under Form 26AS? Yesha says:

  Hey @Amitabh_Verma It is mandatory to create an account on the Income Tax e-filing portal to file your ITR online. It is a hassle-free quicko process. One can register on the portal by providing relevant details such as user type, PAN, first name, surname, date of birth, and fill in the registration form.

  Yesha says:

  

  Hey @Niraj Many times mismatches and discrepancies in actual TDS and TDS credit under Form 26AS happen because of wrong information provided in the TDS return. One can approach the employer/deductor to file a revised TDS return after making the necessary corrections. The income-tax department allows an assessee to mention the reason for mismatch in the online portal in answer to a notice sent by them. Hope this helps!

  Arsheen says:

  Hi, actually I filed ITR 1(A.Y. 2013-14) due to notice served in Jan month. The ITR is pending for verification. Ask the options aren’t available for me client i.e Aadhar verification,evc etc. Only thing is I got my clients DSC. but option of DSC for e-verification is not showing. I can’t send CPC to Bengaluru since it will take time. How can I use DSC to e-verify my already filed return

  Divya_Singhvi says:

  

  Hi @Arsheen The option to e-verify ITR using DSC is to be selected while filing. Once you have filed your ITR only option available for e-verification is EVC/Aadhar OTP or sending ITR V to CPC Bangalore. You have 120
  days from the date of e-Filing to e-verify your ITR. So if 120 days are not over you can send the signed ITR V to CPC Bangalore to get it e-verified and processed. Hope this helps Learn by Quicko – 20 Jul 21

  

  Income Tax Return Verification - How to e Verify ITR? - Learn by Quicko

  It is important to verify the ITR otherwise it will be treated as an invalid return. You can either e-Verify the ITR or send out a copy of the ITR-V to CPC. Estimated reading time: 11 minutes

  Laxmi_Navlani says:

  

  Hi @Sharath It is suggested to file ITR as NRI in India if you have trading transactions even if there are losses.
  If you do not file ITR then there are high chances of your PAN getting flagged by the IT department for non-filing of ITR.
  Also, If you file the ITR on time you can take benefit of carry forwarding the losses and setting off those losses against the profits in future years. Learn by Quicko – 11 Oct 21

  

  Set Off and Carry Forward Losses under Income Tax - Learn by Quicko

  Read Income Tax Rules and tabular summary to set off losses against taxable income and carry forward remaining loss against incomes in future years Estimated reading time: 9 minutes

  

  Blog by Quicko – 16 Mar 20

  

  Why is Taxman texting you? - Blog by Quicko

  The Income Tax Department is sending e-mails and SMS to various non-filers. Understand why ITD is sending you SMS and e-mails. Est. reading time: 5 minutes

  Scalperji says:

  I have started an HUF by infusing funds by collecting gifts from HUF members. If I invest in Shares, Equity MF, from that Capital (Collected as gifts from members), and earn income in the name of HUF, will that income be clubbed with the income of the members? In a way that will be the outcome of the business (trading and investing of shares) done by HUF. And there will be a degree of efforts and luck involved, not a fixed income instrument as FD, etc.