Nil ITR Update: What is Nil ITR? What are its benefits? What should be filed by those earning less than 2.5 lakhs?

ITR Filing Last Date : The last date for filing Income Tax Return is 31st July. Whenever it comes to the tax exemption limit, many people remain skeptical about whether it is necessary for them to file ITR or not. Many people believe that their salary is less than 5 lakhs and it has been said by the government that zero tax is levied on those earning less than 5 lakhs, so whether to file income tax return or not. At the same time, some believe that their salary is less than 2.5 lakhs, so they do not need to fill ITR. If you are also in this state of confusion, then we are going to tell you who should file ITR and who should not and what are its benefits.

It is necessary to file IT Return

If your gross total income is more than Rs 2.5 lakh, then it is necessary for you to file Income Tax Return. This limit is 3 lakhs for senior citizens and 5 lakhs for people above 80 years. If your total income is less than Rs 2.5 lakh, then you do not need to file ITR. But if you file income tax return despite low salary, then it has many benefits.

Benefits of filing Nil IT Return

According to tax and investment expert Jitendra Solanki, even if your salary is less than 2.5 lakhs, you can still file income tax return. This is called Nil, ie Zero IT Return. The advantage of this is that if you want to apply for a loan, whether it is a home loan or a car loan or a personal loan, the IT return is sought from the bank or the lending institution and if you submit the IT return. If you do, then it becomes very easy to get your loan approved.

What to do if taxable income is Rs 5 lakh?

On earning up to Rs 2.5 lakh, you get rebate ie exemption from income tax. If your total taxable income is less than Rs 5 lakh, then you get exemption on the remaining Rs 2.5 lakh. In this case your tax liability is zero. If your total income is much more than 2.5 lakhs, then it is necessary to file ITR. Not only will you not get the exemption for not filling the ITR, on the contrary, you will also have to pay a penalty.

Why ITR Filing is Necessary?

The due date for filing Income Tax Return (ITR) for assessment year 2022-23 or financial year 2021-22 is 31 July 2022. In such a situation, people coming in the income group are advised to file their ITR before the deadline. If your total income is more than Rs 2.5 lakh, then you are required to file ITR. This limit is 3 lakhs for senior citizens and 5 lakhs for people above 80 years.