Fast Guide to NIL Income Tax Return with Advantages for Individuals

Advantages of Filing NIL Income Tax Returns

One should not think of furnishing the ITR when your income comes beneath the tax slab. It is called nil income tax. A form where the assessee shows their income is called an Income tax return (ITR). There are various causes why an assessee should furnish an ITR, the main cause being claiming the tax deductions. While from the individual assessee, even the firms, proprietorships, and Limited Liability Partnerships are needed to furnish the nil income tax returns when there are no profits or business activities. In the latest tax regime, the person would avail of deduction beneath the income tax section 80CCD(2). The deduction would be availed when the employer contributes 10% of the basic salary to the Tier-I NPS account of the employee.

What Do You Mean by The Nil Income Tax Return

A nil ITR is furnished by the person whose taxable income comes below the income tax slab and does not need to furnish any taxes. It is essential to furnish the ITR irrespective of low/nil income.

Advantages of Filing The Nil Returns

Filing nil returns would not be acknowledged as a load but it has its own advantages. Non-filing may indeed need to furnish the penalty to the IT department. when you have the 0% tax slab, furnish the nil returns every year and it will save you from penalties. Some of the advantages are:
Proof of your income: A nil ITR provides the legal document providing all the needed information about your financial status.
To avail of the tax refund: Sometimes TDS is deducted on the income i.e on interest on bank FDR earned in FY even when the total income is less than the basic exemption limit. To avail of the TDS deducted, it is essential to furnish the income tax return.
Legal proof while applying for loans: It provides a legal document while applying for loans.
Applying for a visa: A nil return is a proof when applying for the visa application as mentioned income proof is indeed a portion of the complete application process.
Set off losses: if you face the stock market, filing a nil return may assist you in this.

What is The Method to Furnish The Nil ITR

There is no specific form to furnish the nil income tax returns. It would be furnished with the help of the same returns furnishing process that is compiled by another assessee.

Comments

GST: Assessees Must E-file Their Tax Returns by 30th Nov 2024 to Claim Pending ITC

If you are a GST-registered assessee you need to consider the due date to avail of any due Input tax credit or revised errors/omissions for the FY 2023-24 is November 30, 2024, via submitting the appropriate GST forms. Missing the due date can produce an outcome of a financial loss as the unclaimed ITC could not be used to offset your output tax obligation. What is the Method to Claim the Due ITC or Revised GST Errors for the FY 2023-24 It was stressed by the tax experts that the GST law specifies the procedure to claim the due ITC via GSTR-3B and amend errors in GSTR-1. Filing GSTR-1: Errors induced in GSTR-1 can be rectified by making amendments in the following GSTR-1 filings. Filing GSTR-3B: Via the GSTR-3B return the obligated ITC can merely be claimed. November 11, 2024, was the due date to submit the GSTR-1, and November 20, 2024, is for GSTR-3B without any penalty. Both the outcomes can be provided till November 30, 2024, as per the late fees. R...

How ITR Software Assists Individuals in Filing Tax Returns

Every assessee's process of income tax return (ITR) filing is significant, as it contributes to Indian's economy. The Income Tax Department has made efforts to facilitate this approach in recent years, but numerous people still see themselves steering a difficult financial system, multiple tax deductions, miscellaneous exemptions, and changing tax laws. This complexity can turn what must be an easy task into a significant challenge. In this context, income tax software evolves into an important partner, presenting a useful variety of accuracy, efficiency, and reassurance. The software enables return filing that permits taxpayers to handle their financial responsibilities when complying with the law. 1. Accurate Tax Calculations An incorrect income tax calculation of taxes could result in messages from the Income Tax Department or missed refunds. The tax software helps in finding taxable income and tax deductions that you may be allowed, like insurance or home loans. The co...

Why Small Firms Should Consider Gen Payroll Software?

Businesses in this competitive era would be required to manage the payroll. Payroll software has multiple operations such as paying employees, following tax laws, managing employee benefits, filing important documents, and keeping accurate records. Businesses that manage tasks manually or with spreadsheets can result in inappropriate compliance and issues, wasting time in doing operations. Gen Payroll software arrives to manage payroll with accuracy and resolve the issues that come therein. The merits and demerits of Gen Payroll software are mentioned below. Gen Payroll Software Gen Payroll is a payroll management software made by SAG Infotech . It eases and automates the process of payroll. The software’s features are tracking employee attendance, calculating salaries, ensuring compliance with laws like PF (Provident Fund), ESI (Employee State Insurance), and TDS (Tax Deducted at Source), as well as generating payslips. Businesses, whether small or large, can use this software. ...

SAG Infotech: Need Tax Software (Call 0141-4072000)

Search This Blog