Nil return: A must-do even for those with income below threshold level

Banks, passport and visa authorities ask for your ITR, and it's a prerequisite for tax refund

When it comes to filing a tax return, experts reiterate one mantra irrespective of the taxpayer’s income level: File your returns even though your taxable income is below the threshold for filing Income-Tax Return (ITR).

An ITR filed when an individual or an entity’s income falls below the taxable limit is referred to as a nil ITR. Says Ankit Rajgarhia, principal associate, Karanjawala & Company, Advocates, “By submitting this return, taxpayers demonstrate that they did not earn enough income during the financial year to be liable to pay income tax.”

Multiple benefits

While the Income-Tax (I-T) Act of 1961 does not make it