Filing Not Compulsory for Zero Income

• If your total gross income is below the basic exemption limit, filing ITR is generally not mandatory.
  
• The exemption limit is ₹2.5 lakh for individuals below 60 years under the old regime.
  
• Senior citizens and super senior citizens have higher limits.
  
• No legal obligation exists if there is no taxable income.
  
• Voluntary filing is still allowed even when not required.
  

Situations Where Filing Is Still Mandatory

• If you want to claim a refund of TDS deducted.
  
• If you have foreign assets or foreign income, regardless of income level.
  
• If you deposit more than ₹1 crore in a bank account in a year.
  
• If your electricity bill exceeds ₹1 lakh, or foreign travel exceeds ₹2 lakh.
  
• If you receive income as a representative assessee or through a trust.
  

Benefits of Filing Even with No Income

• Filing ITR helps in maintaining a clean financial record.
  
• Useful as proof of income for visa, loan, or credit card applications.
  
• Helps in carrying forward losses for future tax benefits.
  
• Establishes legal compliance history for future income years.
  
• Ensures TDS refund processing even if income is below taxable limits.
  

Exemption Limit and Tax Regime Choice

• Under both the old and new tax regimes, exemption thresholds apply.
  
• For most individuals, no filing is needed if income is below the limit before deductions.
  
• However, if income exceeds limit before Section 80 deductions, filing becomes mandatory.
  
• Choosing the correct regime is important when computing eligibility.
  
• Filing under the new regime does not change filing necessity rules.
  

Voluntary Filing Process

• You can voluntarily file ITR even if not required by law.
  
• The same online procedure is followed for voluntary returns.
  
• Declare nil income and verify the return electronically.
  
• No penalty is imposed for voluntary nil returns.
  
• It strengthens your financial and tax profile in the long term.