The deadline for filing Income Tax Returns is fast approaching, with taxpayers gathering necessary documents like Form 16 and 26AS. The deadline remains July 31, as in previous years.
Individuals with income below the tax exemption limits—currently 3 lakh rupees under the new tax regime and 2.5 lakh rupees under the old tax regime—are exempt from filing tax returns and effectively pay no tax.
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However, these individuals can still choose to file 'NIL' returns. While not mandatory, filing NIL returns offers several advantages. Proof of filing an income tax return can facilitate easy loan processing, serve as address proof, expedite visa processing, and assist in purchasing term insurance.
Filing NIL returns can also help in maintaining a financial record, which might be beneficial for future financial planning and compliance.