e-File Nil Income Tax Return

By Hiral Vakil on February 11, 2020

What is 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.

Who should file ITR?

Due Date file Nil Income Tax Return

Individuals can file 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.

What is the due date for return filing?

Step-by-step process 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:

  1. Log in to your account on Income tax e-filing website, and prepare and file a return.  
  2. Prepare your return offline through Income Tax Utility and file return from your login on the e-filing website.
  3. File return through Quicko, create an account, enter basic and income details and e-file return in less than 5 minutes.

What are the benefits of filing Nil Tax Return?

In case your income is less than INR the basic exemption limit, you can still file a Nil ITR. Following are the benefits of filing 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 same can be claimed as refund by filing Nil tax 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 return. 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 View Plan


1. 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.

2. 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.

3. 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 if he/she had filed an income tax return in the previous year.