You can still file zero return without fine, you will get five amazing benefits
Business Business: The last date for filing Income Tax Return (ITR) is 31st July. Now you will have to pay a penalty for filing income tax. But, zero return i.e. return with zero tax liability can still be filed without any penalty. The thing to keep in mind in this is that you will not be able to claim any deduction. Your total income should fall directly within the basic exemption limit. In the new tax regime, the basic
exemption limit is Rs 3 lakh for all. At the same time, in the old tax regime, the basic exemption limit for those below 60 years of age is Rs 2.5 lakh. Rs 3 lakh for 60-80 years and Rs 5 lakh for people above 80 years of age. People falling in this category can file returns without penalty.
Let us know why one can file zero return, why it is filed, what are its benefits.
Loan is easily available
Income tax return acts as a proof of your income. When you file ITR, it becomes a solid proof that you are earning from some source. This also creates your credit profile. This makes it easier for you to get a loan from a bank or NBFC (Non-Banking Finance Companies).
TDS will be refunded
If you are employed and could not submit Form 15G/H, then TDS (Tax Deduction at Source) will be deducted from your salary. In such a situation, zero return can save you from loss. With its help, you can claim the refund of the TDS amount which your company has deducted from the salary.
Benefit of showing loss
If you invest in business or stock market, then you may also suffer loss during the financial year. In such a situation, you can show your loss by filing zero return. When you will get profit in the coming time, then you can adjust that loss in taxable income. This will reduce your tax liability.
You will easily get visa
With zero ITR, you can easily get visa for many countries. Many times visa officers ask for ITR of a few years for foreign travel. They actually want to verify your income level. In such a case, ITR may also be required along with bank statement and other financial documents.
Helpful for scholarships too
Many scholarships or fellowships are given according to income. If you have filed zero ITR, then you can easily show your income limit. This will make it easier for you to get those government fellowships, which are especially for low-income families.
Who can file zero return?
If you are starting to file income tax return for the first time and your total income does not fall under the taxable income, then you can file NIL return. It can also be filed by those people who were filing returns for the last several years, but this time their income fell below the income tax limit. However, filing zero return after the deadline does not provide the benefits of carrying forward losses.
