How to File Nil ITR Online for Companies & Individuals?

Some years are quiet for businesses, no income, no sales, no earnings. Does that mean taxes don’t apply? Not exactly. Knowing how to file a nil ITR is important, even with zero income. Filing online is quick, easy, and keeps your tax records updated, helping you avoid future notices or penalties.

If your income is below the basic exemption limit, your tax liability becomes zero. As per Section 139(1) of the Income Tax Act, 1961, individuals with non-taxable income do not have to file a return. However, if they choose to file a return despite having no taxable income, they file a nil return. 

Nil ITR can be filed by both individuals and companies, for example:

• Individuals (optional):
  
  • Students
    
  • Homemakers
    
  • Salaried professionals earning below the taxable limit
    
• Companies (mandatory):
  
  • Startups or businesses with no revenue
    
  • Companies with zero sales or earnings

In this blog, we will guide you step by step on how to file a nil ITR return, from choosing the correct ITR form to submitting on the Income Tax portal and verifying your return. Following these steps makes the process fast, safe, and stress-free.

What is a NIL ITR return?

You file a Nil ITR to show the Income Tax Department that your income is below the taxable limit and that you did not pay any taxes during the year. While optional for most individuals, filing a zero-income tax return helps maintain official proof for loans, visas, or other verifications. For companies, it is mandatory under Section 139.

When You Should File a Nil Income Tax Return?

Even if you have no taxable income, there are certain situations where it is important to file a nil income tax return:

• To show proof of income: If you are just starting and your total income is below the taxable limit, filing a nil income tax return helps maintain a record. It can also be used as proof when applying for a visa, passport, or other financial verifications.
  
• To continue maintaining a record: If you have been filing returns for many years and this time your income falls below the taxable limit, filing a nil return helps keep a continuous record. It can also be useful in case of any future scrutiny from the Income Tax Department.
  
• To claim a refund: If deductions reduce your income below the taxable limit, you still need to file a nil return. Also, file it to claim any excess TDS paid.

Filing a nil return is optional, but it provides official proof of income status and smoothens future financial or legal processes.

Key Benefits of Filing a Nil ITR

Even if your income is below the taxable limit, filing a Nil ITR has many practical advantages. Before you learn how to file a nil ITR, here are the important nil ITR benefits you should know:

1. Helps in Visa Applications: Many embassies ask for an ITR as financial proof. A Nil ITR is accepted and strengthens your visa application.

2. Useful for Passport Applications: Passport authorities accept Nil ITR as valid address and financial proof when required.

3. Required for Loan Applications: Banks often check ITRs to verify income stability. Filing a Nil ITR helps support your loan eligibility.

4. Claim Refund on TDS Deducted by Banks: Banks may deduct TDS on interest from FDs or savings. You can claim this refund only by filing a Nil ITR.

5. Claim TDS Refund for Consultants & Freelancers: Some companies deduct TDS from payments made to freelancers or consultants. If you have no taxable income, you can claim the entire amount back through a Nil ITR.

6. Mandatory if You Hold Foreign Assets: If you own any foreign asset (bank account, property, shares), filing an ITR is compulsory, even when your income is below the exemption limit.

7. Carry Forward Stock Market Losses: If you made losses in stocks or mutual funds, a Nil ITR lets you carry forward those losses to set off future gains.

8. Mandatory in Certain High-Value Situations: You must file an ITR, even a Nil ITR, if any of the following apply:

• You deposited ₹1 crore+ in one or more current accounts.
  
• You spent ₹2 lakh+ on foreign travel for yourself or someone else.
  
• You spent ₹1 lakh+ on electricity consumption in a year.

Types of Nil ITR: Which Form to Use for a Nil Return?

The right ITR form depends on your income type, even if your final income is nil.

1. ITR-1 (Sahaj) – Best for Most People

You can use the ITR-1 form to file a nil return if you are:

• A salaried person
  
• A pensioner
  
• Earning interest from a bank
  
• Owning only one house property
  
• Having a total income of up to ₹50 lakh

This is the simplest form and is used by most people who want to file a nil ITR.

You cannot use ITR-1 if:

• You have capital gains
  
• You own foreign assets
  
• You are a company director
  
• You have business income
  
• You have more than one house property

2. ITR-2 – For People with Extra Income Sources

Use the ITR-2 form if you have:

• Capital gains (shares, mutual funds, property)
  
• More than one house property
  
• Foreign income or foreign assets
  
• Income above the ITR nil limit, even if deductions make the taxable income zero
  
• NRI status

This form is for people who cannot use ITR-1 but still need a nil ITR form based on their income type.

3. ITR-3 – For Business or Professional Income

You must use ITR-3 if you:

• Run a business
  
• Work as a professional (not under presumptive taxation)
  
• Are a partner in a partnership firm
  
• Have trading income like F&O

Even if your income becomes zero after expenses or deductions, you must use this nil return ITR form.

4. ITR-4 (Sugam) – For Presumptive Income

Use ITR-4 if you follow the presumptive tax scheme Section 44 under:

• Section 44AD
  
• Section 44ADA
  
• Section 44AE

This form is suitable when you declare income on a presumptive basis and want to file nil ITR online if your calculated income becomes zero.

Selecting the correct form ensures smooth ITR filing in India online for nil returns.

Documents & Information You’ll Need for Nil ITR Filing

To file an ITR nil return, you should have the following documents and information ready:

• PAN card – mandatory for filing returns.
  
• Aadhaar card – ensure it is linked with your PAN.
  
• Bank account details – for refunds or correspondence.
  
• Form 16 – if applicable (from your employer).
  
• Form 26AS / TRACES / TDS details – to check tax already deducted.
  
• Mobile number and email ID – linked with PAN for OTP verification.
  
• Netbanking/e-filing login credentials – for quick access and filing.

Quick Checks Before Filing a Nil ITR Return

• Confirm that your total income is below the basic exemption limit.
  
• Ensure no additional taxable income like capital gains, interest exceeding limits, or other sources.

E-verification Options for ITR Nil Return

• Aadhaar OTP – authenticate instantly using your linked mobile number.
  
• Netbanking – verify directly via your bank portal.
  
• Electronic Verification Code (EVC) – generated through the income tax e-filing portal.
  
• Sending signed ITR-V to CPC, Bengaluru – as an alternative if online e-verification isn’t possible.

Filing a Nil ITR keeps your tax records updated and provides proof of income for loans, visas, or other financial verifications.

How Do You File a Nil ITR in Income Tax?

In this guide, we’ll show step-by-step how to file a nil return in income tax on the official portal, including important tips to avoid errors.

Step 1: Create or Log in to Your e-Filing Account

Creating or logging in ensures your account is ready for secure nil ITR filing. Make sure your PAN is linked with Aadhaar for pre-filled details.

• Visit the Income Tax e-filing portal.
  
• Click ‘Login’ and enter your PAN, password, and captcha.
  
• If you don’t have an account, click ‘Register’, enter your PAN, name, date of birth, and contact details, and verify using Aadhaar OTP.

Pro tip: Use a verified mobile number and email linked to your PAN for OTP verification during login and filing.

Step 2: Select ‘File Income Tax Return’

This step ensures you are using the correct form for your nil ITR and avoids mistakes in submission.

• On the dashboard, click ‘File Income Tax Return’.
  
• Select the Assessment Year (e.g., 2025–26).
  
• Choose ITR-1 (Sahaj) – ideal for salaried individuals or pensioners with nil income.

Extra tip: Only select ITR-1 if you have income from salary, pension, or a few other sources. For other income types (capital gains, business, etc.), a different ITR form may be required.

Step 3: Verify Personal Details

Accurate personal details prevent future notices from the Income Tax Department and ensure smooth nil ITR filing.

• Check that pre-filled details such as name, PAN, date of birth, address, and bank account are accurate.
  
• If any details are incorrect, update them in your profile before filing.

Extra tip: Your bank account must be active and correctly linked for any potential refunds.

Step 4: Enter Income Details

Entering zero or leaving fields blank correctly indicates a nil ITR, showing no taxable income for the year.

• For a nil return, leave income fields blank or enter ‘0’ wherever applicable.
  
• Pre-filled salary or pension amounts may appear; if total taxable income is below the exemption limit, leave as is.
  
• Check that no additional income sources (interest, rent, capital gains) exceed the basic exemption limit.

Pro tip: Double-check if you had any income from freelance work, savings interest, or other sources, only if taxable.

Step 5: Check Tax Details / TDS

Correct TDS reporting ensures you don’t lose refunds and maintains clean nil ITR filing records.

• Open Form 26AS on the portal to confirm any TDS deducted.
  
• Enter 0 in the tax payable fields if no additional tax is due.
  
• If TDS was deducted, it can be claimed as a refund when filing a nil ITR.

Extra tip: Even if your income is nil, filing a Nil ITR ensures that the system credits your TDS refunds to your account automatically.

Step 6: Preview & Submit

Previewing your return helps you avoid errors, fill all fields correctly, and complete the Nil ITR process efficiently.

• Use the ‘Preview & Submit’ option to review all entered information.
  
• Make corrections for errors, omissions, or mismatched pre-filled data.
  
• After confirming, submit your ITR.

Pro tip: Take a PDF or screenshot of the preview for your personal records before submission.

Step 7: E-Verify Your Nil ITR

E-verification confirms your nil ITR filing is officially accepted and completes the process legally.

• Choose one of the e-verification options:
  
  • Aadhaar OTP – for instant verification if your Aadhaar is linked to PAN.
    
  • Netbanking – verify through your bank’s portal.
    
  • Electronic Verification Code (EVC) – generated on the e-filing portal.
    
  • Send signed ITR-V to CPC, Bengaluru, if online verification isn’t possible.

Extra tip: E-verification is faster and avoids sending physical ITR-V documents.

Filing your nil ITR is simple and ensures your tax records remain updated, even with zero taxable income. For a quick, secure, and expert-assisted nil ITR filing, RegisterKaro can help you complete the process without stress.

Filing a nil ITR is now stress-free with RegisterKaro, ensuring your tax records stay updated and accepted by the Income Tax Department. Start your nil income tax return filing today and maintain a clean tax record effortlessly.

Due Date, Penalty & Fees for Filing a Nil Income Tax Return

A Nil Income Tax Return must be filed within the regular ITR deadline. Usually, individuals need to file their return by 31st July of the Assessment Year. For FY 2024–25, the due date for non-audit taxpayers has been extended to 15th September 2025.

Companies and other taxpayers whose accounts require an audit generally have a due date of 31st October. For FY 2024–25, the latest notification extends this deadline to 10th December 2025.

The due date for filing a Nil ITR is the same as filing a normal return. If you file after this deadline, your Nil ITR will be treated as a belated return.

The good news is that there is no penalty for the late filing of a Nil ITR. The fees for filing a Nil return late are ₹0, as long as your total income remains below the taxable limit.

Even though there is no fine, filing on time is still recommended for the smooth processing of loans, visas, and TDS refunds.

Common Errors When You File Nil ITR: How to Avoid Them

Filing a nil ITR or trying to nil ITR online is simple, but small mistakes can delay processing or even make the return defective. Below are the most common issues you may face and what to do next.

1. Using the Wrong ITR Form

Many people choose the wrong form while filing a nil ITR, for example, selecting ITR-2 instead of ITR-1.

Fix:

• Check the Income Tax Department’s ITR guide.
  
• Choose ITR-1 (Sahaj) for salaried taxpayers with simple income.
  
• If already submitted, file a Revised Return with the correct form.

2. Not E-Verifying the Return (ITR Marked as ‘Defective’)

Your ITR nil return gets submitted but remains pending because you don’t verify it within 30 days.

Fix:

• Go to My Account → e-Verify Return on the e-filing portal.
  
• Verify using Aadhaar OTP, net banking, Demat, or bank account.
  
• If it shows a defect, correct it and resubmit.

3. Mismatch With Form 26AS or TDS Details

Even in nil ITR filing, mismatched TDS entries or income details can cause errors.

Fix:

• Download Form 26AS or AIS from the portal.
  
• Check TDS, bank interest, or any reported income.
  
• Reconcile differences before final submission.

4. Aadhaar OTP Not Working

Aadhaar OTP fails during login or verification, delaying your nil ITR file online process.

Fix:

• Try again after checking the network and Aadhaar-linked mobile number.
  
• Use alternate verification:
  
  • Net Banking
    
  • Bank Account EVC
    
  • Demat Account EVC

Avoiding these simple mistakes ensures your nil ITR is filed smoothly, processed quickly, and accepted without any defects.

What Happens After You File a Nil ITR?

After you file a nil ITR, the Income Tax Department performs its backend verification and checks. Here’s a quick overview of what happens once your return is submitted:

What Happens to Your Acknowledgement & E-Verification?

After filing, the first step is confirmation and verification of your nil ITR filing. Here’s what follows immediately:

• Instant ITR-V acknowledgement generated: Once you file a nil income tax return, the system creates an ITR-V (acknowledgement receipt). This confirms that your return was successfully submitted. You can download it anytime under “View Filed Returns”.
  
• E-verification required within 30 days: Your return is not considered valid until you e-verify it. You can do so using Aadhaar OTP, net banking, bank account EVC, or Demat EVC. E-verification completes the filing cycle for an ITR nil return.
  
• If you miss the e-verification deadline: Your ITR will be marked invalid, meaning it will be treated as not filed at all. You must file a fresh return again. This applies even when you file a nil ITR with zero income.

When to Expect Refunds or Portal Updates?

Once your return is verified, CPC (Central Processing Centre) begins processing. Here’s what you can expect afterwards:

• Quick processing for nil returns: Since nil ITR filing requires minimal computation, CPC usually processes it much faster than regular returns. Many users see updates within a week.
  
• Refund timelines (if TDS was deducted): If TDS was deducted and you are eligible for a refund, the system typically credits it within 20–45 days after you complete e-verification. The system deposits refunds directly into your validated bank account.
  
• Track status easily: You can check updates by visiting:

My Account → View e-Filed Returns/Forms → Status.

Here you’ll see whether your return is Processed, Under Review, or Refund Issued.

Timely verification ensures your nil ITR filing is processed smoothly, without delays or rejections. Let me know if you want the next section or need formatting in a different tone!

Do You Need a CA or Tax-Filing Service for Filing a Nil Return?

Many taxpayers wonder whether a nil ITR filing requires professional help. You can file most simple Nil ITRs on your own, but in some cases, experts can save you time, help avoid errors, and ensure full compliance. Here’s what you should know next.

When You Don’t Need a CA?

In most basic scenarios, you can easily file nil ITR online yourself:

• If your income is genuinely zero for the entire financial year: No salary, no freelance income, no interest earnings above limits, your return is only a declaration of “zero income,” making the filing extremely simple.
  
• If all details are correctly pre-filled on the Income Tax Portal: Your PAN, Aadhaar, bank details, employer section (if any), and address appear automatically. You just confirm and submit.
  
• If Form 26AS and AIS show zero income and zero TDS: With no deductions, mismatches, or errors, there’s nothing complicated to calculate, so a DIY filing is perfectly safe.

Ideal for students, homemakers, job-seekers, or anyone with no taxable income.

When Should You Consider a CA or Tax Expert?

Even for an ITR nil return, professional help is useful in these situations:

• Foreign income, foreign assets, or foreign bank accounts: These disclosures are mandatory even if income is zero, and incorrect reporting can lead to notices.
  
• Multiple employers or job switches during the year: Different salary structures may create mismatches in Form 26AS/AIS.
  
• Unexpected entries in AIS/26AS: Unknown interest income, TDS entries, or PAN-based errors need correction before filing.
  
• Previous ITR errors, late filings, or notices: A CA ensures the current return is filed correctly and helps resolve old issues.
  
• Technical issues during filing: Aadhaar OTP failures, login problems, or e-verification errors can be handled smoothly by a CA.

In these cases, expert filing ensures accuracy and prevents future complications.

Why RegisterKaro CA Services Worth it?

RegisterKaro’s CA-assisted ITR service helps you file a nil income tax return without stress:

• Dedicated CA support
  
• Review of AIS, 26AS, and all details
  
• Corrections for mismatches and errors
  
• Filing for all forms (ITR-1, ITR-2, and more)
  
• Support for e-verification and post-filing queries
  
• 100% accuracy with a complete audit trail

Ready to File Your Nil ITR? Let RegisterKaro Handle It for You

If you want error-free filing, expert review, and quick turnaround, RegisterKaro CA services are the simplest and safest way to file your nil ITR.

Get your Nil Return filed by RegisterKaro’s expert CA team, fast, affordable, and 100% accurate.

Conclusion

Filing a Nil ITR is a simple yet important step, even when your income is zero. It keeps your financial records clean, helps you avoid future tax issues, and becomes useful whenever you apply for a loan, visa, or government document. Whether you are an individual with no taxable income or a business with no revenue, submitting a Nil ITR keeps your compliance smooth and worry-free.

If you want to file quickly without mistakes, platforms like RegisterKaro make the process even easier with auto-filled details, expert checks, and guided e-verification. Filing a Nil Income Tax Return takes just a few minutes but gives long-term financial benefits, so it’s always better to file on time and stay fully compliant.

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Frequently Asked Questions (FAQs)

1. What exactly is a “Nil ITR”?

You file a Nil ITR when your total taxable income for the year is zero (below the basic exemption limit) or when you have no tax payable. Filing tells the Income-Tax Department you had no taxable income that year, useful as proof, even though it’s voluntary for many taxpayers. 

2. Do I have to file a Nil ITR, or is it optional?

If your total income is below the basic exemption limit, filing is usually not mandatory. However, certain situations (foreign assets, high-value transactions, TDS refunds, etc.) make filing compulsory. Many people still file a nil return for continuity of records, refunds, and documentation like visa or loan applications. 

3. Which ITR form should I use to file a Nil ITR?

Choose the form by the type of income you had (even if the final taxable income is zero). Salaried/pension: ITR-1 (Sahaj); capital gains/foreign assets: ITR-2; business/profession: ITR-3; presumptive scheme: ITR-4 (Sugam). Use the Income-Tax portal help pages to confirm form applicability before filing.

4. Can I claim a TDS refund if I had tax deducted but my income is nil?

Yes, you must file an ITR (even a Nil ITR) to claim a refund if TDS was deducted on bank interest, consultant payments, or other income, and your total tax liability is zero. The e-filing portal / CPC processes refunds after return submission and e-verification.

5. What is the due date to file a Nil ITR this year?

The Nil ITR must be filed by the same deadline as other taxpayers. For FY 2024–25 (AY 2025–26), the CBDT extended the due date for non-audit cases to 15th September 2025 (check later notices in case of further changes). File by the deadline to avoid complications of belated returns.

6. Is there a penalty for late filing of Nil ITR or an ITR late fee for nil return?

If your total income is below the basic exemption limit, the late-filing fee under Section 234F is generally not leviable. For others, late fee rules may apply (sliding from ₹1,000 up to ₹5,000 depending on income and timing). Always check the official FAQ and Section 234F rules before filing belatedly.

7. How do I e-verify a Nil ITR after submission?

You can e-verify via: Aadhaar OTP (if PAN–Aadhaar linked), netbanking, bank-account EVC, Demat EVC, or generate an EVC on the portal. If you don’t e-verify within the window, the system treats your return as unverified or defective, and you must re-file it or send a signed ITR-V.

8. Can a company file a Nil ITR? Is it mandatory for companies?

Yes, companies must file a return of income irrespective of profit or loss. Even if a company’s turnover is nil or it has no transactions, the company (and most firms/LLPs) must file its ITR as per Section 139 and related guidance.

9. I made a mistake in my Nil ITR. How can I correct it?

If the system has not processed your return yet, you can file a revised return under Section 139(5) by selecting “Revised” and providing the original Acknowledgement. The portal also has “Discard” and rectification/ITR-U options depending on timing. Multiple revisions are allowed until the assessment is complete.

10. How long will I receive a refund after I file a Nil ITR if TDS was deducted?

Once your return is processed and accepted, CPC usually credits refunds to the validated bank account. For simple cases (including nil returns with TDS), taxpayers often see updates within a few weeks; typical timelines reported range from 20 to 45 days after e-verification, though processing times can vary. 

11. Is it mandatory to file a Nil ITR in India?

Filing a Nil ITR is optional for individuals whose income does not exceed the taxable limit. For companies, LLPs, and businesses, filing is mandatory, even if there is no revenue, profit, or turnover. Non-filing by such entities may attract penalties or notices from the Income Tax Department, making it important to comply with Section 139 regulations.

12. Can a student file Nil ITR?

Yes, students with income below the taxable threshold can file a Nil ITR, though it is optional. Filing helps create an official record of income for future use, such as applying for scholarships, loans, or visas. It also demonstrates financial compliance and provides proof that the individual had no taxable income during the relevant financial year.

13. Can I file Nil ITR without Form 16?

Yes, Form 16 is not required for filing a Nil ITR. Taxpayers can manually enter income details and TDS from Form 26AS or rely on auto-filled data on the Income Tax e-filing portal. This makes filing simple for those without Form 16, including students, homemakers, or individuals with minimal or no taxable income.

14. What happens if I don’t file Nil ITR?

For individuals below the taxable limit, there is no penalty for not filing a Nil ITR. However, failing to file can affect future financial verifications like loans, visa applications, or continuity of tax records. Companies and businesses must file returns regardless of income, and non-compliance may lead to penalties, notices, or other legal complications under Income Tax regulations.

15. What is the due date / last date to file Nil ITR?

The Nil ITR must be filed by the standard ITR deadlines. For individuals (non-audit cases), FY 2024–25, the due date is 15th September 2025. For companies or audited accounts, the deadline is 10th December 2025. Filing within these dates ensures compliance and avoids issues with belated returns or potential scrutiny by the Income Tax Department.