Income Tax Return: What is NIL ITR and who should file it? MintGenie explains

livemint.com:

Tax season might seem complex! In India, you aren’t required to file a return if your income is below the basic exemption limit, which varies based on your age and chosen tax regime.

The threshold for filing an Income Tax Return (ITR) under the old regime varies based on age groups. Here are the specific limits:

In contrast to the old regime, the new tax regime sets a uniform filing threshold of ₹3 lakh for individuals, Hindu Undivided Families (HUFs), and other individuals (excluding companies and firms).

Nevertheless, filing an ITR becomes mandatory if your total income exceeds the basic exemption threshold. When income is below this limit, certain types of income such as capital gains or earnings from foreign assets might require filing an ITR.

The nature of income significantly influences the criteria for filing ITR, regardless of whether your total income is below the basic exemption limit. Below is an explanation of how capital gains and foreign assets can necessitate the filing of an ITR:

Capital gains: Even if your total income is below the limit, you may still need to file an ITR if you have capital gains during the year. Capital gains are taxed separately and can increase your taxable income beyond the exemption limit, necessitating the filing of an ITR. For those unfamiliar, capital gains tax applies to the profit earned from the sale of capital assets such as stocks, mutual funds, or real estate.

In India, capital gains undergo varying tax treatments based on the investment duration. Short-term capital gains (assets held for less than a year) are taxed at a flat rate determined by the asset class. On the other hand, long-term capital gains (assets held for more than a year) may qualify for exemptions or