Nil ITR Filing: According to Indian income tax laws, If your yearly income is less than Rs. 2.50 lakhs and you are a citizen of India under the age of 60, you are not required to pay income tax. in this case you do not have to file an income tax return (ITR)The basic exemption limit depends on the income tax regime selected by an individual.
If person choose old tax regiem, then the basic exemption limit of person will depend on FY 2022-23 based on age. If they choose the new tax regime, then the basic exemption limit is Rs 3 lakh, irrespective of the age of an individual.
Nil ITR Filing Meaning
A nil ITR should be filed to show the Income Tax Department that you fall below the taxable income and therefore need not to pay taxes during the year and also to declare the Income Tax department that no taxes have been paid in the respective financial year.
Read Also: What happens if you miss the ITR filing deadline of July 31, 2023
Who can file Nil ITR?
HUF, AOP or BOI or Individual gross total income (before allowing any deductions under section 80C to 80U) is less then Rs 2.5 lakhs. And Rs 3 lakh for senior citizens (aged above 60 but less than 80) or Rs 5 lakhs for super senior citizens (aged above 80), filing ITR is not mandatory, however, it is advisable to do Nil ITR filing.
Filing ITR is mandatory for individuals who own a foreign asset even when their income is below the threshold of Rs.2.5 lakhs.
Read Also: Income tax return: 10 mistakes to avoid while filing ITR for AY 2023-24
What are the benefits of filing Nil ITR?
A individual will get certain benefits after filing nil income tax return. Some of these are as follows:
⦁ Passport applications accept nil ITR as valid proof of address.
⦁ Losses incurred in the stock market can be carry forward by filing nil ITR when the income is below the threshold of Rs.2.5 lakhs.
⦁ TDS on interest on deposits can be refund or can be claimed by filing nil ITR.
⦁ Getting loans is easy
⦁ Getting scholarship is easy too
Read Also: F&O Trading ITR Filing: Everything an trader should know about tax return filing
How to file nil income tax return online?
⦁ Visit the income tax department’s ITR filing site/page
⦁ Enter your income details and deductions
⦁ Income tax is computed and you will be shown that you have no tax due.
⦁ Submit the return
⦁ E-Verify or send a signed ITR-V form copy to CPC Bangalore
Or make it easy by contacting team Babatax.
Read Also; Free ITR filing Online for AY 2023-24: Complete guide to e-file Income Tax Return
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