What is a Nil return? When do you have to file one

NEW DELHI: People with greater than Rs2.5 lakh in gross annual revenue are required to file revenue tax returns. Those with revenue under this threshold can file ‘Nil return’. Let’s perceive why and when one ought to file a zero return. Also Read | Why India must look east at Taiwan You can file a zero return to assert tax refund. It is feasible that your revenue for the yr is under the exempted restrict of Rs2. 5 lakh however your financial institution deducted TDS (tax deducted at supply) from the curiosity as you forgot to submit type 15H/G. In this case you’ll be able to file a Nil return to assert the tax deducted. In case somebody is making use of for a mortgage or bank card, banks ask for revenue proof. In such circumstances if one has filed a Nil return, it may be used as revenue proof. For making use of for a journey visa, one wants to supply revenue proof, and an revenue tax return serves as one. At instances smaller corporations don’t present Form 16, subsequently the revenue tax return can be utilized as proof of revenue. The tax division has guidelines about who all must file returns. Under the seventh proviso to Section 139(1) of the Income-tax Act, 1961, even when the revenue is under the exempted restrict, an individual must file ITR in case she or he meets any one of many following standards: a) paid an electrical energy invoice of ₹1 lakh or extra through the yr; b) incurred an expenditure of ₹2 lakh or extra for journey to a international nation for self or another individual; c) deposited an quantity of over ₹1 crore or extra in a number of present accounts. Tax exemption on capital features will now not be thought of whereas calculating the minimal tax-exempt revenue. (Send in your queries at [email protected] and get them answered by trade specialists.) Subscribe to Mint Newsletters * Enter a legitimate e mail * Thank you for subscribing to our publication.