How to File Zero Income Tax Return Online (2027)

A NIL/Zero income tax return is filed to show the income tax department that you fall below the taxable income and do not need to pay taxes this year.

Here are 3 reasons why you should do it:

• As Your Income Proof: When you go to apply for a loan, you will need to show some proof of your income and your income tax return will serve as your income proof. It will also help when you file an application for a passport or visa.
• To Claim a TDS Refund: Banks deduct 10% TDS once FD interest crosses Rs 50,000 a year (Rs 1 lakh for senior citizens, per section 194A thresholds on incometax.gov.in). If your total income is below taxable limits, that deduction is refundable — but only if you file.
• To Carry Forward Your Losses: If you are an investor or trader in the stock market and if you face some loss then you can balance that against your gains with your income tax return.

Under the new regime, filing is compulsory above Rs 4 lakh of gross income (Rs 2.5 lakh under the old regime). Below that it is optional but worth doing: ITRs double as income proof for visas and loans, preserve refunds, and keep loss carry-forwards alive.

Below the limit, filing is optional but good practice — the benefits above are real, and e-filing a simple ITR-1 takes under an hour.

Yes, you have to file a Nil return for your company, even if there is no revenue or activity in the company.

Filing a nil ITR uses the same portal and the same ITR forms as a regular return (usually ITR-1 for salary). The old XML/Java-utility method is retired — everything runs on the incometax.gov.in pre-filled online forms now.

• Pan Card
• Aadhar Card
• Bank Account Details and Interest Details
• Salary Details, Form 16
• Investment Details (If Any)
• Create Your Account If You Don't Have It at Income Tax Department Website.

1. Go to the Income Tax e-Filing portal, https://www.incometax.gov.in/iec/foportal/

1. Login to e-Filing portal by entering user ID (PAN), Password, Captcha code and click 'Login'.

1. Click on the 'e-File' menu and click 'Income Tax Return' link.

1. On Income Tax Return Page:

• PAN will be auto-populated
• Select 'Assessment Year'
• Select 'ITR Form Number'
• Select 'Filing Type' as 'Original/Revised Return'
• Select 'Submission Mode' as 'Prepare and Submit Online'

1. Click on 'Continue'

1. Read the instructions carefully.

1. Fill all the applicable and mandatory fields of the Online ITR Form.

• Note: To avoid loss of data/rework due session time out, Click on the ‘Save Draft’ button periodically to save the entered ITR details as a draft. The saved draft will be available for 30 days from the date of saving or till the date of filing the return or till there is no change in the XML schema of the notified ITR (Whichever is earlier).

1. If You Filled Everything Correctly Your Amount Payable will show 0 on 'Taxes Paid and Verification' tab.

1. Choose the appropriate Verification option in the 'Taxes Paid and Verification' tab. Choose any one of the following option to verify the Income Tax Return:

• I would like to e-Verify
• I would like to e-Verify later within 30 days from the date of filing (the window was cut from 120 days — don't sit on it).
• I don't want to e-Verify and would like to send signed ITR-V through normal or speed post to the Centralized Processing Center, Bengaluru — within 30 days from date of filing.

1. Click on the 'Preview and Submit' button, Verify all the data entered in the ITR.

1. 'Submit' the ITR.

• On Choosing 'I would like to e-Verify' option, e-Verification can be done through any of the following methods by entering the EVC/OTP when asked for.
• EVC generated through bank ATM or Generate EVC option under My Account
• Aadhaar OTP
• Prevalidated Bank Account
• Prevalidated Demat Account
• Note: Choosing the other two verification options, the ITR will be submitted but the process of filing the ITRs is not complete until it is verified. The submitted ITR should be e-Verified later by using the 'My Account > e-Verify Return' option or the signed ITR-V should be sent to CPC, Bengaluru.
• The EVC/OTP should be entered within 60 seconds else, the Income Tax Return (ITR) will be auto-submitted. The submitted ITR should be verified later by using the 'My Account > e-Verify Return' option or by sending signed ITR-V to CPC.

1. Verify Your E-Return And It's Done.

The old Excel/Java utilities and XML upload flow are retired. Filing now happens on pre-filled online forms at incometax.gov.in, or via the current offline (JSON) utility from the portal's Downloads section for poor-connectivity cases. The steps above use the online flow, which covers almost everyone.

1. Log in at incometax.gov.in and open e-File > Income Tax Returns > View Filed Returns.

2. Pick the assessment year, open the filing, and download the receipt (ITR-V/acknowledgement) from the downloads on that page.

Not everyone below the taxable limit needs one, but four situations make it clearly worth the hour:

• FD-heavy savers. Interest crosses the bank's TDS threshold, 10% gets deducted, and your actual tax is zero. The refund exists only if a return claims it.
• First-jobbers with a partial year. You worked five months, TDS was cut at annualised rates, and the year's total income lands well under the exemption. The withheld amount comes back.
• Investors and traders carrying losses. Capital losses only carry forward if the return is filed — a nil return with the loss schedule is what keeps them alive against future gains.
• Anyone building a paperwork trail. Visa applications, loan approvals and some government forms ask for the last three years of ITRs. A filed nil return reads as "income: nil", which is exactly what those forms want to see.

1. The return sits as "submitted" until e-verified — do that immediately, while the OTP options are fresh.

2. Processing produces an intimation under section 143(1); for a clean nil return with a refund claim, the refund credits to your pre-validated bank account.

3. Keep the acknowledgement (ITR-V) and the intimation — they are the income proof you filed this for.

Filing a nil return takes under an hour and pays back in refunds, proofs, and preserved losses. Below the limit it is optional — but it is the cheapest financial paperwork you will ever do.