Daijiworld Media Network – New Delhi

New Delhi, Apr 15: Contrary to common belief, filing an Income Tax Return (ITR) is not only for those who have tax to pay. Even in FY 2025–26, submitting a nil return can offer several practical advantages, especially with the filing season for AY 2026–27 approaching.

One of the key benefits is claiming refunds. Even when total tax liability is zero, deductions through Tax Deducted at Source (TDS) may have already been made on income such as fixed deposits, freelance earnings or dividends. Filing an ITR is the only way to claim this amount back; otherwise, the money remains unclaimed.

A filed ITR also serves as an important financial document when applying for loans or credit cards. Banks and financial institutions rely on ITR records to assess income stability and financial discipline. Even a nil return helps build credibility, especially for freelancers or individuals with irregular income, improving the chances of loan approvals.

Additionally, ITR records play a crucial role in visa and immigration processes. Countries like the United States, United Kingdom and Canada often require ITR documents from the past few years to evaluate an applicant’s financial stability. Regular filing, even with zero tax, reflects transparency and organised financial behaviour.

Experts note that filing a nil ITR is a simple step that can yield long-term benefits. Beyond tax compliance, it helps maintain a consistent financial record, avoids complications in future transactions, and ensures individuals remain prepared in an increasingly data-driven financial system.