Income Tax Department asks the tax payers to file a nil return if they fall below the taxable income. In order to show that you fall under the taxable income, you need to file Nil Income Tax return. Eventually, the tax payers need not pay their tax for that particular financial year. This is a brief description about the Nil Income Return. If you have any doubts regarding Nil Return and any other queries related to this topic, just get into this article. Here is all you need to know about the Nil Return and the time for filing it by the tax payer. Have a glance!
Time to file a Nil Return
There are two situations when you need to file a nil return. One is you need to show your Income tax return as a proof of your income and the second is when you are looking to claim a refund.
To show IT Return as Income Proof
If the total income for the year falls less than the limit of tax amount that you need to pay then you need to file a nil return. In order to maintain a record of your income tax return, you need to secure all your income proofs. In most of the cases, the income tax returns you’ve filed help you as a proof for your income. For instance, when you are planning to apply for Visa or looking to get a passport, income tax returns helps you in the best way.
To claim a refund
If the annual income is above the taxable amount limit after excluding all the deductions however with deductions, it could be less than the minimum exclusion limit of Rs. 2, 50,000. You need to file an income tax return if you have paid more tax amount than actual amount. In such a case, you can claim a refund.
How do I fill up a nil return online?
Here are the simple steps to file a nil return from the web portal of Income Tax department.
- Type in all the information related to your income and other deductions. You can then check your income tax you need to file.
- After that, you can submit the IT return to the concerned Income Tax Department.
- Later, you can send your ITR-V to CPC Bangalore for the further process of e-filing.
This is the simple process to file a Nil Return to the Income Tax department.