What is Nil ITR Filing and How to File It?
5paisa Research Team
Last Updated: 05 May, 2025 06:26 PM IST

Content
- What is Nil ITR Filing?
- When Should You File a Nil ITR?
- How to File Nil ITR?
- Benefits of Filing Nil ITR
- Conclusion
Filing an Income Tax Return (ITR) is a standard practice for individuals who earn taxable income. However, many people are unaware that even if their income falls below the taxable threshold, they can still file a Nil ITR. A Nil Income Tax Return (ITR) is a declaration to the Income Tax Department that you have no taxable income, and although it’s not mandatory for those below the exemption limit, it can be beneficial.
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Frequently Asked Questions
Nil ITR is filed when your income is below the taxable limit, showing that no tax is due. Regular ITR is filed when taxable income exceeds the exemption limit, and taxes are payable.
It is not mandatory for those earning below the exemption limit, but filing Nil ITR can offer benefits like maintaining records, claiming refunds, and serving as proof of income.
Yes, Nil ITR can be filed if TDS is deducted even when your income is below the taxable limit. It helps claim a refund for the excess TDS paid.
If you miss the deadline (31st July), you can file a belated Nil ITR without incurring a late fee. However, it is advisable to file it on time for accurate records.
Yes, you can file Nil ITR to carry forward business or capital losses, even if your total income is below the exemption limit, enabling you to offset future taxable income.