Get ITR filing for Unemployed online
File your ITR or learn about taxability, applicable ITR form, tax rates, how to save taxes, Documents required and how to file ITR. Contact us to know more!
- ITR filed by CA
- Get ITR in 1 hour
- ITR filing for last 3 years also available
Many people think that only those who earn a salary or run a business need to file Income Tax Returns (ITR). But that’s not always true. Even if you are currently unemployed, you may still need to file an ITR—or it might be helpful for you in the future. For example, you might have earned some income from savings account interest, fixed deposits, or investments. Filing ITR can also help if you want to claim a refund or apply for a loan or visa later on. In this blog, we’ll explain why filing ITR is important for unemployed individuals and how you can do it easily.
Latest updates
- ITR filing Due date for FY 2024-25 (2025-26) has been extended from 31st July 2025 to 15th September 2025
Benefits of ITR Filing for unemployed
Claim a refund of TDS (Tax Deducted at Source) on income such as interest from fixed deposits
Serve as valid proof of income for loan, credit card, or visa applications
Carry forward losses from capital gains, business, or other sources to future years
Maintain a clean financial record and avoid scrutiny from the Income Tax Department
Helpful for documentation while applying for government schemes, subsidies, or tenders
- Helps prevent late fees and interest by filing within the due date
Taxability of Unemployed individuals
Unemployed individuals might think filing an Income Tax Return (ITR) is unnecessary, but certain situations make it essential. These include income from other sources such as interest from savings accounts, fixed deposits, recurring deposits, dividends from stock investments and mutual funds, and rental income from property leasing or subletting. Additionally, capital gains from the sale of shares, mutual funds, real estate, gold, jewelry, bonds, and debentures require filing an ITR. Business income from freelance work, consulting services, creative pursuits, online platforms, small businesses, home-based operations must also be reported.
Income tax deduction under Old regime for Unemployed individuals
Income tax deductions helps to reduce their taxable income, thereby lowering their overall tax liability. These deductions can apply to various expenses and investments of personal nature.Here’s a comprehensive guide to the key income tax deductions available to them:
- Maximum Limit: ₹1,50,000 per financial year.
- Eligible Investments and Expenses:
- Public Provident Fund (PPF)
- Employee Provident Fund (EPF)
- National Savings Certificates (NSC)
- Life Insurance Premiums
- Tuition Fees for Children
- Principal Repayment on Home Loan
- Equity-Linked Savings Scheme (ELSS), etc
- Health Insurance Premiums:
- Self, Spouse, and Children: Up to ₹25,000.
- Parents: Additional ₹25,000 (₹50,000 if parents are senior citizens).
- Preventive Health Check-up: Up to ₹5,000 within the overall limit.
- Education Loan Interest: Deduction for interest paid on education loans for higher education, with no maximum limit. Applicable for loans taken for self, spouse, or children.
- Donations to Charitable Institutions: Deduction for donations to specified funds and charitable institutions. The percentage of deduction (50% or 100%) depends on the organization.
5. Section 80TTA and 80TTB Deductions
- 80TTA: Deduction on interest income from savings accounts up to ₹10,000.
- 80TTB: For senior citizens, a deduction up to ₹50,000 on interest from savings accounts, fixed deposits, etc.
- Rent Paid: Deduction for individuals who do not receive HRA (House Rent Allowance). The deduction is the least of:
- ₹5,000 per month.
- 25% of total income.
- Rent paid minus 10% of total income.
7. Section 80GGB and 80GGC Deductions
- Political Contributions: Deduction for contributions to political parties or electoral trusts. (80GGB for companies and 80GGC for individuals).
Income tax rates for unemployed individuals
Old tax Regime
| Income | Tax rates |
| Upto ₹ 2.50 lakh | 0% |
| ₹ 2.50 lakh – ₹ 5 lakh | 5% |
| ₹ 5 lakh – ₹ 10 lakh | 20% |
| Above ₹ 10 lakh | 30% |
You Can claim deduction under Section 80C, 80D, 80G, etc
For senior citizen (age between 60 & 80 years), tax rate is 0% upto ₹ 3 lakhs. Rest of the rates are same.
For super senior citizen (age above 80 years), tax rate is 0% upto ₹ 5 lakhs. Rest of the rates are same.
In Old tax regime, a maximum tax rebate under section 87A of Rs. 12,500 is available for income upto Rs. 5 lakhs meaning your income is totally tax free till Rs. 5 lakhs. The rebate under section 87A is not allowed to a Non-resident.
New tax Regime (FY 23-24)
| Income | Tax rates |
| Upto ₹ 3 lakh | 0% |
| ₹ 3 lakh – ₹ 6 lakh | 5% |
| ₹ 6 lakh – ₹ 9 lakh | 10% |
| ₹ 9 lakh – ₹ 12 lakh | 15% |
| ₹ 12 lakh – ₹ 15 lakh | 20% |
| More than ₹ 15 lakh | 30% |
New tax Regime (FY 24-25)
Income | Tax Rate |
Upto ₹ 3 lakh | 0% |
₹ 3 lakh – ₹ 7 lakh | 5% |
₹ 7 lakh – ₹ 10 lakh | 10% |
₹ 10 lakh – ₹ 12 lakh | 15% |
₹ 12 lakh – ₹ 15 lakh | 20% |
Above ₹ 15 lakh | 30% |
New tax Regime (FY 25-26)
| Income Range (₹) | Tax Rate |
|---|---|
| Upto ₹ 4 lakh | Nil |
| ₹ 4 lakh – ₹ 8 lakh | 5% |
| ₹ 8 lakh – ₹ 12 lakh | 10% |
| ₹ 12 lakh – ₹ 16 lakh | 15% |
| ₹ 20 lakh – ₹ 20 lakh | 20% |
| ₹ 20 lakh – ₹ 24 lakh | 25% |
| Above ₹ 24 lakh | 30% |
Which ITR form is applicable for Unemployed person?
The Income Tax Return (ITR) forms vary based on the sources and limits of income. ITR-1 is for individuals with income from salary/pension, one house property, and other sources (like interest) with a total income up to ₹50 lakh, excluding business or professional income and capital gains.
ITR-2 is for individuals and Hindu Undivided Families (HUFs) with income from salary/pension, house property, capital gains, and other sources, but not from business or profession.
ITR-3 is designed for individuals and HUFs with income from a proprietary business or profession, also covering income from salary, house property, capital gains, and other sources, suitable for those with complex financial situations and higher earnings.
ITR-4 applies to individuals, HUFs, and firms (excluding LLPs) with total income up to ₹50 lakh, under presumptive taxation for small businesses and professions, simplifying compliance by reducing record-keeping requirements.
Each form is tailored to specific income sources and limits, ensuring appropriate filing based on individual financial circumstances.
What documents are required for ITR filing for Unemployed person?
- PAN Card
- Aadhaar Card
- Bank statement
- Balance sheet and Profit & loss A/c
- Investment proof under section 80C or proof of any other deduction
- Details of Capital Gains related to the sale of property, shares, mutual funds, gold, and other assets. This includes sale deeds, broker statements, and transaction receipts
- Form 26AS and AIS
- Other relevant documents depending on income sources
Step-by-Step Guide for ITR filing for Unemployed
1. Registering on the Income Tax E-Filing Portal
- Visit the Portal: Go to the official Income Tax Department e-filing website.
- New User Registration: If you are a first-time user, click on ‘Register Yourself’. Choose the ‘Individual’ category and enter your PAN, which will serve as your User ID.
- Fill in Details: Provide your basic details, contact information, and create a password.
2. Choosing the Correct ITR Form from ITR-1 or ITR-2 or ITR-3 or ITR-4
3. Filling Out Personal Details and Income Information
- Select the Assessment Year: Choose the appropriate assessment year for which you are filing the return.
- Income Details: Enter your income details under the appropriate heads:
4. Claiming Deductions and Exemptions
- Deductions under Section 80C: Enter eligible deductions such as life insurance premiums, PPF, NSC, and tuition fees.
- Deductions under Section 80D: Include premiums paid for health insurance.
- Other Deductions: Claim deductions under other sections like 80E for education loan interest, 80G for donations, etc.
5. Verifying and Submitting the Return
- Tax Payment: If there is any tax payable, pay it through the e-filing portal using net banking or other available options.
- Preview and Submit: Preview the completed ITR form, ensure all details are correct, and click ‘Submit’.
- Verification: After submission, verify your ITR within 30 days of filing. You can e-verify using methods such as Aadhaar OTP, net banking, or through a digital signature. Alternatively, you can send a physical signed copy of ITR-V to the Centralized Processing Center (CPC).
What is the Due date of ITR filing for Umemployed person?
The Due date to file Income tax return for Unemployed person is 31st July.
In case you have missed this deadline then you can file belated ITR till 31st December with late fees.
Also for any mistake made while filing ITR before 31st July, you can make corrections by filing Revised ITR any number of times till 31st December.
If you miss deadline of Belated income tax return filing then you can file Updated ITR till 2 years from the end of relevant assessment year with late fees and additional taxes.
What are the Consequences of non-payment of Tax and non-filing of ITR by Unemployed person?
Not paying taxes and neglecting to file your Income Tax Return (ITR) can lead to severe consequences. Firstly, unreported income is considered illegal, tantamount to tax evasion, which may result in a penalty ranging from 100% to 300% of the evaded tax under Section 271(C). Secondly, a penalty of 10% to 90% of the undisclosed amount may be imposed under Section 271AAB, depending on the circumstances. Lastly, missing the filing deadline incurs a 1% interest per month or part thereof on the unpaid tax amount as per Section 234A.
Looking for help?
Even if you are currently unemployed, filing your Income Tax Return can still be important. It helps you maintain a clean financial record, carry forward losses, and may be required for visa applications or loan approvals. At A R Dhorajiya & Co, we make the ITR filing process simple and stress-free for you. Let our expert team guide you through every step. Get in touch with us today to file your ITR easily and on time.
Contact us today at +91 9769647582 for a consultation or to get started with your ITR filing
Frequently Asked Questions
No, it is not mandatory to file an Income Tax Return (ITR) if your total income is below the basic exemption limit of Rs. 2,50,000. However, filing ITR can still be beneficial for purposes like claiming refunds, applying for loan, credit card, visas, or maintaining a financial record.
Yes, a non-earning person can file an ITR voluntarily. This is called filing a “Nil return” and is useful for future financial documentation, loan applications, or to carry forward certain losses.
If you have no income, you can still file a voluntary ITR by choosing the appropriate form (usually ITR-1 or ITR-2, depending on other factors) and reporting zero income. You can do this online through the Income Tax portal or take help from a CA like A R Dhorajiya & Co.
Filing a zero or nil return means submitting an ITR showing no income for the financial year. Log in to the Income Tax portal, select the relevant ITR form, enter income in the income section, and complete the verification process. If you’re unsure, A R Dhorajiya & Co. can assist you with accurate and timely filing.
What our clients say
Recieved ITR Certification in less than 3 hours for a affordable cost.
Highly recommended.
With Warm Regards
Arvind Mishra
Many appreciations with thanks,
Dr.Gautam Makwana
Transparent communication,
Happy with the outcome.
Thank you!
RECOMMENDED
All Services across Bharat
- Income tax
- GST
- Business registration
- Accounting
- Audit
- ROC filings
- Certificates
- Project report or CMA data
