Filing your income tax return isn’t just a legal obligation—it also has many practical benefits:
1. Avoid Penalties
If you don’t file your ITR by the deadline, you may have to pay a penalty of up to ₹5,000 or more.
2. Claim Refunds
If excess TDS (Tax Deducted at Source) has been deducted from your salary or investments, you can get it back only if you file your ITR.
3. Loan and Visa Processing
Banks and embassies often ask for ITR copies when you apply for loans or visas. Filing your return regularly builds your financial profile.
4. Carry Forward Losses
If you have capital losses (for example, from selling shares at a loss), you can carry them forward and set them off against future gains—but only if you file your return on time.
5. Peace of Mind
A filed ITR is proof that you’ve declared your income honestly. It keeps you on the right side of the law.