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NIL Return

vishnupriya (CA Final) (1418 Points)

19 May 2010

Hi Friends,

One of friend is filling NIL Retrun from 15 years. Now she is getting retired and saying that there will be no income. So now is there a need to still file the NIL Return even after retirement when there is zero income??

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14 Replies

Mahesh Vishwakarma (CA Final (New Course)) (66 Points)
Replied 19 May 2010

There is no compulsion by the department. As per Income Act a person becomes assessee when his/her income before deduction exceeds the maximum amount exempted under the act (exemption limit).

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Amir (Learner) (4016 Points)
Replied 19 May 2010

Dear Vishnu,

Mahesh is absolutely right.

Since u have mentioned that assesse in the present case is filing return from last 15 years, so just as a measure of good practice, return should be filed for atleast 1 year after the retirement and then it can be discontinued (provided income remains below exemption limit).

The rationale behind above is, AO will think before issuing notice u/s 142 to ask for the return if he has a Nil return for an A/Y. Otherwise AO would simply issue notice u/s 142 & ask for the return just because a REGULAR assessee has suddenly discontinued the return submissions.

2 Like

Nitin Grover (CS) (1228 Points)
Replied 19 May 2010

Dear Vishnu

Their is no need to file the return as per act the person earning GROSS INCOME more than the basic exemption limit than its compulsory for him to file the return and in ur case dont have any income so no need

Regards

Nitin Grover (CS) (1228 Points)
Replied 19 May 2010

Dear Vishnu

Regards

SHIVAM GROVER (student) (304 Points)
Replied 19 May 2010

ossam

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SAURABH (AUDIT HEAD) (52 Points)
Replied 19 May 2010

I agree with all of u great work frnds!

C.Balaji (Learner) (1867 Points)
Replied 19 May 2010

Originally posted by : Amir
	Dear Vishnu, Mahesh is absolutely right. Since u have mentioned that assesse in the present case is filing return from last 15 years, so just as a measure of good practice, return should be filed for atleast 1 year after the retirement and then it can be discontinued (provided income remains below exemption limit). The rationale behind above is, AO will think before issuing notice u/s 142 to ask for the return if he has a Nil return for an A/Y. Otherwise AO would simply issue notice u/s 142 & ask for the return just because a REGULAR assessee has suddenly discontinued the return submissions.

completely agree.........

jignesh l bhatia (CA) (78 Points)
Replied 19 May 2010

As a part of good paractice one should file return regularly eventhough it is "Nil"

Also department will never send the notice for "Nil" income

so its optional whether to file return or not

VIPIN KUMAR (Practicing) (309 Points)
Replied 19 May 2010

Filing of return is base on gross total income. if your gross total income ( before deduction chapter VI) is less than exmption limit as prescribed slab rates then there is not need to filing of return of realated financial year but if gross total income has been exceed from the exmption limit but after deduction there is no tax liability then you have to filing of return.

Kiru.G (Article Assitant) (273 Points)
Replied 25 May 2010

if the income the below the slab rate there is no need to file the retun....its optional only... some people flie nil return for three yrs this is because of some particular reason (eg.getting passport).... according to my view nil return is only optional

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karthikeyan.v (Chartered Accountant) (523 Points)
Replied 25 May 2010

Dear kribhalakshi

is it necessary to find IT return to get a passport pl enlighten me

karthi

CA Amit Kumar Khaitan (Research Analyst) (360 Points)
Replied 25 May 2010

Amir ji is great

Kumar (Article) (922 Points)
Replied 27 May 2010

there is no compulsion by the department as her gross total income is below maximum exemption limit......but as a good practice it is adviced to file the return if the assessee earns any income.