In the financial year 2025-26, there will be lakhs of Indians whose tax liability will be completely eliminated. Due to exemption of Section 87A and rebate on income up to Rs 7 lakh under the new tax system, the tax of many people becomes ‘Nil’ i.e. zero. In such a situation, a big question comes to mind – when you don’t have to pay even a single rupee of tax to the government, then why spend the headache of filing Income Tax Return (ITR) unnecessarily?

But according to financial experts, filing ‘Nil ITR’ i.e. zero tax return is not only wise, but it is also like a strong security blanket for your future. It is not just a means of depositing tax, but an official government certificate of your earnings. Those who ignore it may miss out on golden opportunities ranging from loans to foreign travel.

ITR is the government ‘certificate’ of your earnings.

ITR is the most transparent government record of your annual income. Often freelancers, youth working part-time or women doing small jobs from home are worried about proving their income. When you file ‘Nil ITR’, your financial profile is recorded with the Income Tax Department. This document identifies you as a financially reliable citizen.

The only way to get back the stuck money

Do you know that sometimes even if your income is less than the tax slab, banks deduct TDS on the interest on your FD or savings account? Automated TDS deduction is very common in digital banking system for FY 2025-26. This cut money remains stuck with the government. If you file ITR, this money comes directly back to your account through the refund process. Sometimes this little hard work can save you Rs 5 to 10 thousand in a year.

‘Green signal’ for home loan and credit card

If you are dreaming of buying your own house or car in the future, then banks will first ask you for ITR of last 2-3 years. Even if your tax is zero, ITR proves that your income is stable and you are financially disciplined. According to experts, those who file ITR regularly have a better CIBIL score and their chances of getting lower interest rates on the loan also increase. At the same time, it is also very helpful in increasing the credit card limit or taking a premium card.

Big help in visa and government schemes

Are you planning to study or travel abroad? ITR of 3 to 5 years is a mandatory document to obtain a visa for countries like USA, UK or Canada. Without ITR the chances of visa rejection increases to more than 50% because the embassy wants to check your financial condition. Apart from this, ITR is also considered a strong document for verification in government scholarship or subsidy schemes like Pradhan Mantri Awas Yojana (PMAY).

Opportunity to compensate for stock market losses

If you have suffered a loss in the stock market or mutual fund, ITR provides a golden opportunity to file it. You can ‘carry forward’ your business or capital loss for the next 8 years. That means when you get profit next year, you can save tax by deducting the previous loss from it. In particular, F&O (Futures and Options) traders are required by law to file ITR on time, otherwise they will not be able to set-off their losses.

In this era of Digital India where PAN and Aadhaar are linked, the Income Tax Department keeps an eye on your every major transaction. In such a situation, filing ‘Nil ITR’ protects you from the fear of any legal notice or investigation. Remember, the last date for filing returns for assessment year 2026-27 is 31 July 2026. So what are you waiting for, start preparing for your financial strength today itself.