How to File a NIL Return on iTax

A NIL return is required when you have zero taxable income for the tax year but still need to comply with KRA filing requirements. Every KRA PIN holder must file a return, even with no income.

When to File NIL Return

File a NIL return if you had:

• No employment income during 2024
• No business income
• No rental income
• No other taxable income
• But you have a valid KRA PIN

Why NIL Returns Are Important

• Legal compliance - Required by law
• Avoid penalties - Prevents non-filing penalties
• Credit applications - Banks often require tax compliance certificates
• Business registration - Required for licenses and permits
• Clean tax record - Maintains good standing with KRA

Key Steps in the Video

1. Access iTax Portal

• Login with KRA PIN and password
• Navigate to Individual Returns section
• Select appropriate filing method

2. NIL Return Process

• Choose "NIL Return" option
• Confirm zero income status
• Complete required declarations
• Review and submit

3. Important Declarations

• Confirm no income received
• Declare no tax due
• Submit supporting information if requested

Common NIL Return Scenarios

• Students: No income while studying
• Unemployed: Between jobs or job searching
• Retirees: Before pension/retirement benefits start
• New PIN holders: Obtained PIN but no income yet
• Homemakers: No formal employment income

Important Notes

• NIL returns are free to file
• Must be filed by June 30, 2025
• Keep acknowledgment receipt
• File annually until you have taxable income

After Filing NIL Return

• Download and save acknowledgment
• Keep records for future reference
• File normal return when income resumes
• May need tax compliance certificate for various applications

Moving Forward

When you start earning income:

• File ITR for Employment Income
• Use Excel Option for Complex Income
• Update your contact information on iTax