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How To Fill NIL ITR In India? Know About Its Benefits, Filing Charges, & More

Pragya Pathak

Author

Updated: 15-11-2025 at 3:30 PM

NIL Income Tax Return (NIL ITR) is one of the most beneficial yet misunderstood concepts that comes under Section 139(1) of the Income Tax Act of 1961. NIL Income Tax Return is a statement or declaration that states that an individual’s income for the financial year was non-taxable. However, it still reflects in the records of financial institutions like banks.

This declaration is extremely important for those individuals who possess formal salary slips or a steady source of regular income, as it helps them establish their financial credibility. As India is working on shifting its working from traditional to digitised approaches, it’s advised to have a clean tax record with minimal to no liability.

Read the article to learn more about NIL ITR, including information on the processes of filing NIL ITR online or checking the NIL ITR status.

Overview

The table below summarises some key details about NIL ITR that one should know.

Name of the return	NIL Income Tax Return
Purpose	A declaration that states that an individual’s income for the financial year was non-taxable
Under section	Section 139(1) of the Income Tax Act of 1961
Deadline of filing	31st July of an Assessment Year
NIL ITR filling charges	None

What Is NIL ITR?

NIL Income Tax Return (NIL ITR) is a type of Income Tax Return that is filed by those individuals whose taxable income for a financial year is below the basic exemption limit, as in they have zero taxes to pay. Please note that here, even though the income is not taxable, people are still required to submit their returns to the Income Tax Department to officially inform them of no taxable income in a year.

Usually, this type of Income Tax Return is filed by students, freshers, homemakers, and other such people with limited income that does not cross the limit of basic exemption. NIL ITR form looks just like a normal ITR. The only difference is that in the column of ‘payable tax’, no amount is written. This was established by the Income Tax Department to ensure complete transparency and accountability.

Why File A NIL ITR?

There are numerous reasons for filing NIL ITR online. Some of the reasons are laid down below in detailed points for one’s reference:

When one files a NIL ITR, a valid digital and official documentation is created with the Income Tax Department, which can be used by them as proof of income, as and when required.
NIL ITR also helps people in applying for various types of loans, like educational or personal, as this statement shows the lender one’s financial activity and thus helps in establishing the debtor’s credibility.
It is impossible for one to claim for refund without filing a proper NIL Income Tax Return in instances where TDS is deducted from interests or part-time incomes. Using one’s NIL ITR, one can claim for those unnecessary deductions and get their money back.
Filing for NIL ITR creates a trusting and transparent relationship with the tax authorities and the people with income within the NIL ITR filling limit.

Prerequisite For Filing NIL ITR

Individuals who are planning to file for a NIL Income Tax Return should keep in mind certain things before filing the NIL ITR form. The pre-required conditions are as follows:

Begin by checking if your total income in a financial year falls within the NIL ITR filling limit, which is usually around Rs. 2.5 lakh. If your income is more than this limit, you cannot file for this particular type of return.
Ensure that you have all the documents in place, such as Aadhaar card, PAN card, bank statements, passbook entries, rent receipts, and Form 16 (if employed for a short period), to avoid any errors. Also, ensure that documents like PAN and Aadhaar are linked with each other for a smooth verification and filing process.
Please check your respective Form 26AS or AIS through the Income Tax portal before filing for NIL Income Tax Return. This is to be done to check all the deductions and to ensure one’s eligibility to claim refunds on unnecessary TDS deductions.

Also Read: Did You Get Form 16 From Your Employer?

What Are The Benefits Of NIL ITR?

NIL Income Tax Return is associated with many benefits, some of which are mentioned below in brief points:

Filing for a NIL ITR form helps people in building an official financial record with the Income Tax Department of India, which can be used for various purposes, like proving one’s credibility, showing one’s financial history, and avoiding any gaps in one’s tax profile.
NIL ITR statement also serves the role of a measure of proof of income and proof of address, which helps people in various settings, like VISA or passport applications.
Banks usually deduct Tax Deducted At Source (TDS) on earned interest on deposits, even if one’s income is below the basic exemption limit. But individuals can apply for claims using their NIL income tax returns.
People are mandated to file for an NIL ITR if they own any foreign assets or to carry forward any losses made in the stock market, irrespective of their total income.

How To Fill NIL ITR?

One can fill their respective NIL ITR form by following the NIL ITR online process written below in a stepwise manner for one’s better understanding:

Step 1: Please visit the official e-filing portal of the Income Tax Department of India. Step 2: Register using your personal details, like name, email address, set a password, and log in to your account.

Step 3: After logging in to your account, click on the ‘e-file’ option and then navigate to the ‘Income Tax Return’ option.

Step 4: Select the correct Assessment Year and then click on form ITR-1 (SAHAJ), which is usually used to file for NIL ITR.

Step 5: Accurately fill in your personal details like name, address, and contact information, along with income details. One can enter ‘0’ or the actual annual income if it’s below the NIL ITR filling limit.

Step 6: Click on Validate after filling in your information, and then generate the XML file of your return.

Step 7: Proceed by clicking on the ‘e-file’ tab, clicking on ‘Upload return’, and then uploading the degenerated XML file. Opt for a digital signature if you have one; otherwise, leave it as it is.

Step 8: After uploading the file, verify your return through online methods like internet banking or OTP. If you’re not able to do this step, please send your signed ITR-V form to the Centralised Processing Centre within 120 days of filing.

One can also check their respective NIL ITR status through the same e-filing portal of the Income Tax Department.

What Are The Documents Required To File NIL ITR?

Certain documents that must be attached or uploaded while filing for NIL Income Tax Return are laid down below to avoid any confusion:

Aadhaar card
PAN card
Form 16 (if deductions were made by the employer)
Bank account details
Investment details (for deductions under Section 80C)

What Is The Importance Of NIL ITR While Applying For Loan Applications?

NIL ITR is extremely important when applying for various types of loans. Some of the reasons behind this statement are as follows:

NIL Income Tax Return is surely filed by those who annually earn a sum which is below the basic exemption limit; however, it is still important to file it within the deadline to maintain a striking and smooth financial record, which is usually checked by the financial institutions when one applies for a loan.
Proper filing of NIL ITRs helps people in building a consistent financial record, which represents their financial hygiene, responsibility, and reliability, especially for lenders who decide whether to lend the money or not.
People with NIL ITRs are mostly those who don’t possess any prior financial record. This statement helps them in creating an official record, which is crucial to have to apply for various types of loans, like educational or personal.

What Is the Due Date To File The NIL ITR Form?

The last date to file for NIL Income Tax Return is the 31st July of the Assessment Year, which is the same for filing any regular Income Tax return as well. Please ensure to comply with the mentioned timeline; however, even if someone does not, they will not be required to pay any additional NIL ITR filling charges as penalties. It is advised to follow the deadline to maintain a clean and smooth financial record.

Conclusion

Completing the process of filing NIL ITR online may seem unnecessary at first, but it is extremely important and should be done by all the eligible people within the announced deadline by the Income Tax Department of India. The return not only helps individuals in keeping an official financial record but can also be used in several settings for various purposes.

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