Do I Need to File ITR if My Tax Liability is Nil?

Do I Need to File ITR if My Tax Liability is Nil?

Income Tax Return (ITR) Filing is not just about paying taxes, but it is also about declaring your income. It is not a burden but a responsibility of all taxpayers to stay compliant with the law. If your income is above the basic exemption limit, then you are required to file an ITR. However, many Taxpayers skip ITR filing, thinking that they have no tax to pay. But the truth is that, even if your tax is zero after claiming the rebate under Section 87A, you may still have to file your ITR.

As mentioned earlier, ITR filing is mandatory if your income is more than the specified limit. The tax rebate under Section 87A is given only when you file your ITR. So even if your income is eligible for the rebate, your tax will not be considered zero until you actually file the return and claim it.