No tax liability? Here’s why you should still file your ITR in 2025
Even if your income is below the taxable limit, filing an income tax return (ITR) for FY 2024-25 can offer multiple benefits. Experts highlight that ITR filing is not just for those with tax dues, but also a strategic step for future financial planning.
Claim Refunds for Deducted TDS
In many cases, tax is deducted at source (TDS) even when the individual’s total income is below the exemption limit. Filing an ITR is the only way to claim a refund of this deducted amount.
Carry Forward Capital Losses
Reporting losses from capital markets, such as shares or mutual funds, is essential to carry them forward for future set-off. Without filing a return, such losses cannot be carried forward to future assessment years.
Required for Visa and Loan Applications
Many embassies and financial institutions ask for ITRs of previous years to process visa or loan applications. A consistent ITR record enhances your financial credibility.
Helps Establish Income Proof
For freelancers, gig workers, or those without regular salaries, ITR serves as a formal record of income, which can be useful in multiple official and financial contexts.
Avoid Penalties or Future Scrutiny
In certain scenarios, filing ITR is mandatory even with no tax liability—such as when total income exceeds the basic exemption before deductions or if high-value transactions have been made. Non-compliance can lead to notices or fines.
Conclusion
Filing your ITR—even with zero tax due—ensures compliance, unlocks financial benefits, and builds a clean track record for future needs.
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