Inability to file 'Nil income' on ITR 4

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Proprietor
25 Points Posted on 04 September 2021

Good evening.

Being a freelance Information Technology Enabled Services' consultant with a 'Certificate of Enlistment', I have been filing my tax return through ITR 4 under section 44ADA. 

In the AY 2021-22, my income from the above-mentioned profession has been INR 'zero'.

Presently, while filing the IT return, as I enter the amount as 'zero' in the field of 'Income from Business or Profession', I see an error message stating "Taxpayer cannot file ITR 4 if he does not have income from business u/s 44AD, 44AE, or income from profession u/s 44ADA". 

Hence, my question is which precise ITR form should I feel in my existing scenario? 

Regards, and Thanks in advance. 

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On 04 September 2021 at 19:36 Report
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Quick Summary
A freelance IT consultant using ITR 4 under section 44ADA is encountering an error when trying to file a nil income tax return for AY 2021-22. The system prevents filing ITR 4 without income from business or profession. While one suggestion is to file under 'Income from Other Sources' with minimal interest income to avoid departmental notices, the user wishes to explore options for filing a genuine zero-income return. The core issue is finding the correct ITR form or method to maintain a continuous filing history despite having no professional income.

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2 Points Posted on 04 September 2021
Generally an individual has to file ITR only if his Gross total income exceeds 2.5 lakhs in a FY. Therefore as per my opinion, u need not to file any itr since u don't have income.
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On 04 September 2021 at 23:17
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Proprietor
25 Points Posted on 05 September 2021

Thanks for the revert. 

I would like to file the 'return' since I would prefer to maintain a 'continuous history of filing' even if that remains a 'nil return'. 

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On 05 September 2021 at 17:28
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CONSULTING
1322 Points Posted on 06 September 2021
Originally posted by : B
Thanks for the revert. 

I would like to file the 'return' since I would prefer to maintain a 'continuous history of filing' even if that remains a 'nil return'. 

Yes correct. Only you know you have zero income but the automatic email system of Income tax department may not understand that and will issue you a notice for not filing tax return for one financial year.

Since you may have already earned some small savings account interest of Rs 100 or Rs 200 in that financial year, you better file return with that income being shown under Income from Other sources rather than filing 0 income.

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On 06 September 2021 at 14:50
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Proprietor
25 Points Posted on 06 September 2021

A realistic revert for which I am thanking you in the beginning. 

However, I would still like to explore the ways for filing a 'zero income' by a freelance consultant having a 'Certificate of Enlistment'. 

I hope that I am not being too inflexible! 

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On 06 September 2021 at 18:37

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