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Filing Nil Returns - Step by Step Guide

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📝 What are Nil Returns?

Nil returns are filed when you have a KRA PIN but had no taxable income during the tax year. This applies to:

  • Students with KRA PINs
  • Unemployed individuals
  • Individuals who didn't earn any income
  • Dependents with KRA PINs
⚠️ Important: Even if you have no income, you MUST file nil returns to avoid penalties. Late filing attracts a penalty of KES 2,000 per month or 5% of tax due (whichever is higher).

📋 Step-by-Step Guide to File Nil Returns

1

Log in to iTax Portal

Visit itax.kra.go.ke and enter your KRA PIN and password.

💡 If you've forgotten your password, use the "Forgot Password" option to reset it.
2

Navigate to Returns

On the dashboard, click on "Returns" menu, then select "File Returns".

3

Select Tax Obligation

From the dropdown menu, select "Income Tax - Resident Individual".

4

Select Return Period

Choose the tax year you're filing for (e.g., 2024 for income earned in 2024).

💡 The system will show the return period as "From: 01-Jan-2024 To: 31-Dec-2024"
5

Select Return Type

Choose "Original" if this is your first filing for this period.

6

Answer the Questionnaire

You'll be asked several questions. For nil returns, answer "No" to all income-related questions:

  • Did you have employment income? → No
  • Did you have business income? → No
  • Did you have rental income? → No
  • Did you have any other income? → No
7

Review and Submit

The system will generate a nil return. Review the details and click "Submit".

8

Download Acknowledgement

After successful submission, download and save your Tax Return Acknowledgement Receipt for your records.

💡 Keep this receipt safe - you may need it for future reference or verification.

🎥 Video Tutorial

Watch the official KRA tutorial on filing nil returns:

▶️ Watch KRA Nil Returns Tutorial on YouTube

❓ Frequently Asked Questions

Q: What happens if I don't file nil returns?

A: You'll incur a penalty of KES 2,000 per month of delay or 5% of tax due (whichever is higher). The penalties accumulate until you file.

Q: Can I file nil returns for previous years?

A: Yes, you can file for previous years, but you'll need to pay the accumulated penalties first.

Q: I'm a student. Do I need to file?

A: Yes, if you have a KRA PIN, you must file returns even as a student with no income.

Q: How long does it take to file nil returns?

A: The process takes about 5-10 minutes if you have your login credentials ready.

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