How to File Nil Tax Return?

Understanding Nil Returns

A nil income tax return is filed by individuals or entities who have not earned any taxable income during the year. This type of return is applicable to those who:

• Had no Salary income for the year.
• Did not earn any Business income despite being a resident.

Types of Nil Returns:

There are two primary types of nil returns:

• Nil Income Return: This is filed when an individual has no income for the year.
• Nil Assets Return: This is filed when there are no changes to your assets compared to the previous year’s return.

Steps to File a Nil Income Tax Return:

1. Open the Return Form: Access the online filing portal Iris provided by the Federal Board of Revenue (FBR).
2. Enter Nil Values: In the expenses and assets columns of the return form, enter “0” or “nil” to indicate no income or changes in assets. If there were past assets , leave it as it is.
3. Verify PIN Code: Enter the correct PIN code to authenticate your submission.
4. Submit the Return: Click the “Submit” button to finalize your nil return.

Additional Considerations for Non-Residents:

If you were a non-resident during the year, you must select the “Non-Resident” option from the attribute tab in the IRIS portal.

Benefits of Filing a Nil Return:

• Maintaining Tax Records: Filing a nil return helps maintain a complete record of your tax filings. And you remain an Active Taxpayer in tax records
• Avoiding Penalties: Failure to file a return, even if you have no income, can lead to penalties. Filing a nil return ensures compliance.
• Future Reference: A nil return can serve as a reference for future tax filings and potential claims.

Conclusion:

Filing a nil income tax return is a straightforward process that ensures compliance with tax regulations. By following the outlined steps, individuals can easily submit their nil returns and avoid any penalties associated with non-filing.