Filing ITR with No Income is Smart

 



Why Filing ITR with No Income is Smart?

 

Every year, more than 5 crore people file income tax returns that have no tax liability.

So why are people who don’t need to file ITR spending time filing income tax returns when they can relax on their sofa and watch Netflix? 

If you are a salaried individual with no tax liability, you don’t need to file an ITR, but if that’s the case, why are 15-20% of all ITRs are Nil ITRs? Whenever we talk about filing income tax returns, the first vision that comes to everyone’s mind is a lot of documents, complex calculations and a lot of confusion; that’s why the general public gets a bit baffled when it comes to ITR filing.

Who needs to file ITR in India?

Should I file ITR even if I have no income?

The first question that comes to everyone’s mind is who should file an ITR. Don’t worry. Here’s a breakdown of who needs to file ITR:

Mandatory Filing: The Government has set Mandatory income tax filing for individuals that exceed the basic exemption limit. The exemption limits can vary on the basis of age and residential status of the individual. Here are the basic exemption limits for the financial year 2023-24 (Assessment Year 2024-25):

  • Individuals below 60 years: Rs 2.5 Lakh
  • Senior citizens (60 years to below 80 years): Rs 3 Lakh
  • Super senior citizens (80 years and above): Rs 5 Lakh

Residents with Foreign Assets or Income: Individuals who are residents of India and have assets or income outside India need to file an ITR.

Claiming Tax Refunds:  Individuals who have paid taxes through TDS ( Tax Deducted at Source) or incurred medical expenses can claim their tax refund by filing an ITR.

Mandatory Filing for Specific Transactions: Individuals who have entered into certain high-value transactions, such as buying or selling immovable property, shares, mutual funds, etc., may be required to file an ITR, regardless of their income level.

There are various other conditions in which individuals must file income tax returns.

But should you spend your time and energy filing ITR despite having no Tax Liability? YES. You must be wondering why or how do I file income tax if I have no income. Filing an online income tax return, even if you have no income, has a lot of benefits. In the long run, it can greatly benefit you and help you save money. READ MORE

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