If your income in the fiscal year falls inside the 0% income tax bracket, you file NIL tax returns. By submitting NIL forms, you are declaring to the IT department that your income for the year is less than the minimum income tax threshold and that you are not required to pay any income tax for the year.
Filing a nil return is no different from filing a regular income tax return. It can be filed with the help of the same returns filing procedure that is followed by other taxpayers. Here are the steps you should follow-
1. Gather copies of papers such as your PAN card, Aadhar card, Form 16, bank account information, and information about your investments and deductions.
2. Visit income tax india and sign in using your credentials.
3. Choose the appropriate ITR form and provide your personal information as well as facts about your income and deductions.
4. Your income tax due will be calculated automatically based on the information you submit.
5. If your total income for the year is less than the minimum tax threshold, your outstanding tax liabilities will be NIL.
6. Provide information about your investments and, if necessary, attach papers.
7. Submit the ITR to the tax office.
10. You must now have your ITR authenticated either online using OTP or by sending it to CPC in Bengaluru.
As evidence of income, show your income tax return.
1. You're just starting out, and your total income is less than the taxable limit, but you'd like to keep track of it. Income tax can be used as proof in a variety of situations, such as when applying for a visa or receiving a passport.
2. You had been filing income tax returns for many years and this year slipped under the 'below taxable limit.' This is to keep a record and also as a preventative step in the case of an audit by the Income Tax Department.
Filing income tax returns is required for people whose total income exceeds Rs.2,50,000. We urge that you file your income tax return, even though it is not required if your total income is less than Rs.2,50,000.
If you fail to file NIL returns before 31st July, you might have to pay as much as Rs. 5,000 as a penalty to the IT department. This would be increased to Rs. 10,000 if you do not file NIL returns until the 31st December deadline.