What is Nil Income Tax Return? When do you need to file it?

By Fatima | Published on June 21, 2025

Businesss / June 21, 2025

What is Nil Income Tax Return? When do you need to file it?

A Nil Income Tax return states that an individual taxpayer does not have any tax to pay for the financial year concerned. Though such an individual is not obliged to file an income tax return, filing a NIL ITR helps in some other situations, Read on to know.

Kolkata:

A Nil Income Tax Return (ITR) simply states that the individual filing the return does not come within the taxable bracket. The level of income of this individual is likely below the basic exemption limit. For FY25, the basic exemption limit was Rs 3 lakh. Section 139(1) under the Income-tax Act, 1961 states that every person with a total income that exceeds the exemption limit has to furnish the income tax return within the defined due date.

How to file Nil ITR? When?

It is not any different from filing an ITR where an individual taxpayer pays income tax. In the tax filing portal, the appropriate form is to be selected and then one has to fill the income details and deductions, if any. The income tax payable will be computed and then it will become clear that there is no tax payable.

One has to submit the form and then e verify the ITR to complete the Nil ITR filing process. The due date of filing a Nil ITR is the same as a regular ITR. Usually this deadline is July 31, but for FY25, it has been pushed back to September 15 2025.

A nil ITR is filed to inform the government that the individual is below the taxable income floor and need not pay taxes during the year. It declares to the Income Tax Department that no taxes were paid in the FY in question. Therefore, individuals can file Nil ITR in their interest and is not required by law to do so. However, it has its advantages.

Filing Nil ITR recommended by experts:

A Nil ITR proves that you have an income that is below the taxable threshold — ie, below the basic exemption limit. One who is beginning a career could be earning below the basic exemption limit but could want to keep an official record that can be used in different situations such as applying for a visa.

Such a statement conclusively proves your income at a certain level in front of any authority. “Filing a NIL ITR is often considered a prudent decision. Usually it is recommended,” Himadri Mukhopadhyay, secretary, Income Tax Bar Association says.