My name's Maya, and I'm just starting my first job! It's super exciting, but everyone keeps talking about this "Nil Return" thing. I have no idea what it is, or if I even need to do it. I looked it up online, but it all sounds so confusing with big words and numbers. I get that I don't have to pay taxes if I earn less than a certain amount, but what does that mean exactly? And if I do need to file this Nil Return, how do I even do it? I'm a total newbie at all this stuff, and I just want to make sure I don't accidentally mess something up with the taxman! Any advice you have would be a lifesaver.

- Maya Chaturvedi (Bihar)

Feeling lost about this "Nil Return" thing? Don't worry, it's just a way of saying you need to tell the taxman you didn't earn enough to pay taxes this year. Think of it like sending a "no thanks" message when the Taxman comes calling.

New Job? No Problem

Under the new tax regime, if your salary falls below ₹3,00,000 for the whole year 2023-24, filing a Nil Return is optional. But do it anyway! It gets you on the tax list, makes you look responsible, and helps you later when you want a loan or travel abroad.

Earn Less, Pay Less

Even if you've been working, if your salary minus all your tax-saving stuff like rent allowance and those tax-saving investments still stays below ₹3 lakhs, you can file a Nil Return. For example, if you earn ₹3.5 lakh, and your rent allowance is ₹50,000, then your taxable income is still ₹3,00,000 minus ₹50,000. So you don't have to pay tax, since this works out to ₹3,00,000. 

However, to show the tax department that your taxable income is zero, you have to file a Nil Tax Return. It will state that your rent allowance is ₹50,000 and hence you don't have to pay any tax. Isn't that easy?

No Work, No Taxes

Taking a break or freelancing with ups and downs? If you didn't earn anything taxable the whole year, a Nil Return lets the taxman know you're not hiding any treasure.

Penalty

Don't ignore the Taxman! If you should file a Nil Return and don't, he might ask you to pay a penalty. If you are still confused about whether you need to file pay tax or not, you can speak to a tax consultant about your specific situation.  

Filing Nil Tax Return

Filing a Nil Return is easier than choosing the right filter for your selfie. Just go online, enter your PAN card number, bank details, and maybe that Form 16 thing your boss gave you. The website walks you through it, and it's usually done faster than finishing a cup of chai.

Remember

• Keep your income and tax-saving papers handy.
• Double-check everything before sending it off.
• Save the receipt as proof that you did your duty.

Bonus Tip

Even with no taxes to pay, invest in things like PPF or ELSS schemes. They save you money for later and make you look responsible to the taxman.