ITR-U nil tax

This discussion explores whether a nil ITR-U (Updated Income Tax Return) can be filed when no tax is payable, often required for bank purposes. The consensus is that a nil ITR-U cannot be filed; some tax liability must exist for an updated return to be permissible. Section 234F penalties apply to regular returns, not ITR-U, and income above the basic exemption limit is considered taxable, even if the final tax payable is zero after deductions.