GST return filing are the tax return forms that are required to be filed by these entities with the Income tax authorities of India. A nil income tax return is filed to show the Income Tax Department that you fall below the taxable income and therefore did not pay taxes during the year.

  • To show income tax return as proof of income

You are just starting out and your total income falls below the taxable limit but would like to keep a record. There are several instances where income tax serves as proof, say when you are applying for a visa or while getting your passport made.

You were filing your income tax returns for many years and fell into the ‘below taxable limit’ this year. This is to continue maintaining a record and also preventative measures in the event of scrutiny from the Income Tax Department.

  • To claim a refund

Your total income without taking deductions into account could be above the taxable limit, but with deductions might be below the minimum exemption limit of Rs.2,50,000. If you paid more in taxes than you needed to, you must file an income tax return to claim a refund.

How to file NIL tax returns?

The filing of nil tax returns is no different for any individual than filing regular income tax returns. You can e-file your returns online in a few simple steps.

  • Log in to an e-filing facilitator portal with the mandatory documents. This includes your Aadhar, PAN card, Bank account details, Form 16 and details of your investments.
  • Enter your personal information.
  • Enter your salary details and deduction.
  • Income tax is computed at this stage and it will show that you have no taxes due.
  • Enter details of investments to claim deductions.
  • Submit your return to the Income Tax Department.

Here in this article, we have understood the process to file NIL return in GST. So, if you have been resting easy thinking that you need not file IT returns because you have not crossed the threshold of taxable limit, you may want to reconsider your stance, as filing nil tax returns also have many advantages.

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