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Most Important Benefits of Filing Nil Income Tax Returns

NIL Income Tax Return

Filing a NIL income tax return is not mandatory if your total income is below the basic exemption limit as per the Income Tax Act. But it is always recommended that you file an ITR if there is any source of income earned by you in a financial year.

If you are finding the task tedious, then stop worrying. The process of filing for NIL tax is pretty much similar to that of a normal return filing. No separate process is required. Filing NIL return is helpful in many ways.

Read Also: Easy Guide of Filing I-T Return 1 by Gen IT Software

Top Benefits of Filing Nil ITR

The details are listed below about why should file a nil income tax return by the Indian people?

To Claim a Tax Refund

Sometimes TDS is deducted from the income (say Interest on Bank FDR) earned during an FY even if the total income is below the basic exemption limit. To claim such TDS deducted, it is mandatory to file an income tax return.

Authentic Proof of Your Income

A NIL ITR serves as the legal document giving all the necessary details of your financial status. Besides, it is considered solid proof of income and is accepted by each and every financial institution.

Applying for VISA

A NIL return proves to be handy when it comes to a VISA application as showing proof of income is also a part of the whole applying procedure. For instance, it is compulsory to show the returns filed over the last three years while applying for a Schengen Visa, even if you didn’t have any income.

A Legal Proof While Applying for Loans

Again a legal document while applying for a car, home loan etc. Bankers have a quite common practice of asking for the last three to five years of tax returns while granting any kind of loan. A NIL tax return would help you out in such a situation.

Recommended: Free Download ITR Filing Software for Full Version

Set Off Loses

Filing a return even NIL is mandatory if you’ve suffered any stock market loss and want to carry forward it to the next year. Moreover, regardless of the fact whether you are earning any income or not, you should realize the instances when to file a return. As per the income tax rules, if an individual holds a foreign asset even if not earning any income, must file the return, noted Agarwal.

Filing income tax returns ensures financial stability, which is very necessary for our future sake.


Gen Income Tax E-Filing Software

Disclaimer:- "All the information given is from credible and authentic resources and has been published after moderation. Any change in detail or information other than fact must be considered a human error. The blog we write is to provide updated information. You can raise any query on matters related to blog content. Also, note that we don’t provide any type of consultancy so we are sorry for being unable to reply to consultancy queries. Also, we do mention that our replies are solely on a practical basis and we advise you to cross verify with professional authorities for a fact check."

Published by Arpit Kulshrestha
Arpit Kulshrestha seeks higher interests in financial services, taxation, GST, I-T, etc. Writes articles with depth knowledge and is extensive for the same. The resources provide effective articles for the products of SAG infotech which provides taxation and IT software. Writing from observations and researching makes his articles virtuous. View more posts
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4 thoughts on "Most Important Benefits of Filing Nil Income Tax Returns"

  1. Hey,
    Just want to know, If I file TDS return for non-Salaried deduction is it mandatory to file the TDS return for every year?

    Recently I got a project for Web development, I work with some another company, so I don’t to this every time for other services.

    Can you please help me on this as I need to know it is mandatory to file TDS return every time if you do once please help.

    1. My son is working in a private firm.As his income is not texable(Rs.15000. Per mo th) so he is not getting form 16 for the income.Can he file the ITR without form 16.

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