Nil ITR Filing, Income Tax Return: Salaried individuals have to mandatorily disclose their yearly income to the Income Tax Department based on which the income tax is calculated. According to the Income Tax Act, 1961, a person who is 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 not required. However, it is recommended that every salaried person should file ITR as the document serves as proof of income which is accepted by every institution.
Here, we will tell you the benefits of filing an ITR even if your annual income is below Rs 2.50 lakh.
Nil ITR Filing: 5 Benefits
1. Legal proof of income
A nil ITR is filed with the Income Tax Department to show that your yearly income is below Rs 2.50 lakh. It is a legal document or an authentic proof of income.
2. Tax Refund
In the case of Tax Deducted at Source (TDS) from salary during a financial year despite falling below the exemption limit, it is mandatory to file an ITR.
3. Helpful in 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.
Nil ITR Filing: How to file online
Filing a nil ITR is similar to filing a usual ITR and does not require a special request. The following documents are needed to file an ITR: PAN, Aadhaar, bank account, salary details, Form 16 and investment details.
Step 1: Visit the official website of the Income Tax Department and log in with the registered user ID and password.
Step 2: Select the option for e-filing. Submit your income/deduction details.
Step 3: The income tax will be automatically computed. It will reflect that you have no tax due.
Step 4: Submit the return to the income tax department. Send ITR-V to CPC Bengaluru to complete the e-filing process.
2 thoughts on “Top Reasons to file nil Income Tax Return even if you earn less than Rs 2.50 lakh”
For AY 2022-23 TO file
Gbelated return under sec. 139(4) option is not seen. Where’s the option available. Please guide.