A lot of people fall under the 2.5 lakhs per annum salary slab and most of them don’t know how to file zero income tax return online. This post covers this question.

So let’s assume your career just begun or your salary is less than INR 2.5 lakhs per annum or unfortunately you lost your job or you resigned from your job.

Then an issue will come to your mind that is it required to file an ITR? Or why should I file zero/nil ITR and if I need to file an ITR then what is the process to do it?

That’s what we are going to talk about in this blog.

A zero/nil ITR is filed to show the department of income tax that you fall below the taxable income slab and there is no need to pay taxes for this year’s income.

Here are the three reasons why one must file Nil ITR:-

• Income Proof:

When you are applying for a loan, you are required to present a proof of income and ITR will provide you Income Proof. Nil Income Tax Return also helps when you are filing an application for a Visa or Passport.

• For claiming TDS Refund:

At times bank deducts TDS on interest earned over INR 10,000. Interest can be of your savings accounts or any other deposits in the bank. So if you are below the taxable slab then you are allowed to file nil ITR to get a refund on that TDS.

• To Carry Forward Losses: 

If you are a trader or an investor in the stock market and if you had a loss then you can stable that against your gains with the ITR.

Below are the steps to file zero/Nil ITR online:

1. Visit the Income Tax official e-Filing portal – (www.incometaxindiaefiling.gov.in).
2. Log in to the portal by entering user ID (PAN), Password, and Captcha code and then press ‘Login’.
3. Select the ‘e-File’ menu and press the link of ‘Income Tax Return’.
4. On ITR Page:

• PAN will be auto-uploaded
• Choose ‘Assessment Year’
• Choose ‘ITR Form Number’
• Choose ‘Filing Type’ as ‘Original/Revised Return’
• Choose ‘Submission Mode’ as ‘Prepare and Submit Online’

5. Click on ‘Continue’

1. Now read the instructions cautiously.
2. Fill in all the mandatory and applicable norms of the Income Tax Return Form.

Note: To avoid any loss of rework/data due to session time out or internet failure, Click on the ‘Save Draft’ option at regular intervals to save the entered details of ITR as a draft. The saved draft is available for thirty days from the date of saving or till there is no modification in the XML schema of the notified ITR or till the date of filing the return (Whichever is earlier).

1. If everything is filed accurately your amount payable will show zero on ‘taxes paid and verification’ option.
2. Choose the proper verification alternative in the ‘Taxes Paid and Verification’ option. Choose one from the following alternatives to verify the ITR:

• E-Verification.
• E-Verify within 120 days from the date of filing.
• Send signed ITR-V via normal or speed post to “Centralized Processing Center, IT Department, Bengaluru – 560 500” in 120 days from date of filing.

1. Then click on the ‘Preview and Submit’ option, verify all the data in the ITR.
2. ‘Submit’ the ITR.

• On selecting the ‘E-Verify’ option, E-Verification is done through any of the subsequent methods by submitting the OTP/EVC when required.

• Aadhaar OTP
• EVC generated by using ATM or Generate EVC under My Account
• Prevalidated Demat Account
• Prevalidated Bank Account

Note: Selecting the other two options of verification, the ITR will be submitted but the ITR filing process is not completed until the verification. The submitted ITR must be e-Verified afterwards by using the ‘My Account > e-Verify Return’ tab or the signed ITR-V must be sent to CPC, Bangalore.

• The OTP/EVC must be entered in 60 seconds or the ITR will be auto-submitted. The submitted ITR must be verified later by selecting the ‘My Account > e-Verify Return’ tab or by sending signed ITR-V to CPC, Bangalore.

Verify your E-Return and the ITR filing process is completed.

A zero/nil ITR is filed to show the department of income tax that you fall below the taxable income slab and there is no need to pay taxes for this year’s income.