ITR Deadline 15 September 2025: When Should You File A 'Nil' Return?

The 2025 deadline to file your income tax return (ITR) is less than a week away. Many people, particularly those whose income is below the exemption limit, may find filing ITR an unnecessary task.

Some might think: If I don't owe tax, or my employer has already deducted TDS, why bother with the paperwork? But tax experts say skipping the return could create problems later, and in some cases, it is not even optional.

"Under Section 139 (1) of the Income Tax Act, 1961, anyone whose income exceeds the maximum amount not chargeable to tax must file a return," says CA Ashish Niraj, Partner, A S N & Company, Chartered Accountants. "Beyond that, the law lists several situations where filing is compulsory even if your income is below the taxable threshold."

Those situations include:

• Depositing over Rs 1 crore in current accounts

• Depositing Rs 50 lakh in savings accounts

• Business turnover above Rs 60 lakh

• Professional receipts crossing Rs 10 lakh

• Foreign travel expenses of more than Rs 2 lakh

• Electricity bills of more than Rs 1 lakh in a year

• Or even TDS/TCS of more than Rs 25,000 (Rs 50,000 for senior citizens)

"If you miss the filing deadline in such cases, the tax department can levy penalties ranging from Rs 1,000 to Rs 5,000 under Section 234F. Interest at one per cent per month under Section 234A may also apply on unpaid tax. And where tax liability is above Rs 10,000 and the return is willfully not filed, prosecution provisions under Section 276CC can lead to imprisonment," CA Niraj explains.

For those who don't fall under these rules, the decision to file a Nil return often comes down to prudence. "Banks and embassies typically ask for three years' ITRs when you apply for loans or visas. Filing Nil returns ensures you don't run into issues later. Otherwise, you may have to file an updated return (ITR-U) with additional tax and penalty just to produce the paperwork when required," he says.

This small act of compliance can also strengthen your financial record with lenders. Even if your income is modest, having ITRs on hand demonstrates consistency and credibility for anyone seeking a home loan, credit card, or foreign travel approval, which can matter.

With the new tax regime now being the default option, more individuals may assume filing is not needed if they have no liability. Niraj disagrees: "People should not ignore the benefits of filing on time. The ITR isn't just about paying tax; it's a record that can serve you in different ways later."

In short, filing a Nil return is not about immediate tax savings. It's about staying on the right side of the rules and keeping your financial records in order. As the deadline approaches, it may be worth spending a little time now rather than facing unnecessary penalties or paperwork hurdles later.