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Inability to file 'Nil income' on ITR 4

B (Proprietor) (25 Points)

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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4 Replies

Sai krishna Boosa (2 Points)
Replied 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.

B (Proprietor) (25 Points)
Replied 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'.

J S BHAVSAR (CONSULTING) (1298 Points)
Replied 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.