Author: PEAK Business Consultancy Services | Category: Income Tax Filing in India
Many individuals in India believe that if their income is below the basic exemption limit, they are not required to file an Income Tax Return (ITR)—and while that may be true from a compliance perspective, it’s not always the best financial decision. Filing your ITR even when your income is not taxable brings numerous benefits, including better financial visibility, access to government services, and a solid financial track record.
In this guide, we explain the top benefits of voluntarily filing your ITR even when your income is below the threshold—and why it’s a smart move for students, homemakers, retirees, and low-income earners.
What Is the Basic Exemption Limit?
As of FY 2024-25, under the old regime:
- For individuals below 60 years: ₹2.5 lakh
- For senior citizens (60–80 years): ₹3 lakh
- For super senior citizens (80+): ₹5 lakh
While you’re not *mandated* to file if you earn less than this, there are many benefits to doing so. Our experts can file your ITR even if you’re below the limit—quickly and affordably.
1. Claiming TDS Refunds
Even if your income is below the taxable limit, your bank or employer may have deducted TDS (Tax Deducted at Source). The only way to claim this refund is by filing an ITR.
Example: Banks often deduct 10% TDS on fixed deposit interest, even if your total income is non-taxable. Filing ITR ensures you get your money back.
2. ITR as Income Proof for Visa and Loan Applications
ITR is considered a valid proof of income by embassies, banks, and NBFCs. Whether you’re applying for a visa, a personal loan, or a credit card, a filed ITR improves your financial credibility.
Tip: Students and freelancers planning international education or migration should file ITR to establish an income record.
3. Easy Approval for Credit Cards and Loans
Banks look for income proof, and consistent ITR filing (even with nil tax) boosts your approval chances for loans, credit cards, and EMIs.
Even if you’re a student or a homemaker earning side income, regular ITRs demonstrate financial activity and enhance your credibility with lenders.
4. Carry Forward Losses
If you incur short-term or long-term capital losses (like selling shares or mutual funds at a loss), filing ITR is essential to carry them forward. These losses can offset future gains—but only if you file ITR within the deadline.
How we help: We file returns even with zero tax liability to preserve your capital loss records for future benefit.
5. Build a Clean Financial History
Filing your return regularly, even if you don’t owe taxes, creates a solid track record. This can be valuable later when your income increases or you’re scrutinized for high-value transactions.
Think of ITRs as a financial resume—they show that you’re responsible and consistent with your financial reporting.
6. Preventing Legal Notices and Mismatches
If your PAN has been used for investments, large deposits, or mutual fund transactions, not filing ITR may create red flags—even if your income is below taxable limits. Filing proactively helps avoid scrutiny or mismatch notices from the Income Tax Department.
7. Eligibility for Government Tenders and Subsidies
Several state and central government schemes require applicants to submit ITRs as income proof—this includes MSME benefits, housing schemes, and startup tenders.
Want to stay ready? File your ITR and keep yourself eligible for public schemes and subsidies.
8. ITR Filing is Easy and Affordable
Contrary to popular belief, filing an ITR—especially a NIL return—is simple and inexpensive when done with professional help. There’s no reason to delay or avoid it when services like ours make it seamless.
9. Required for Freelancers and Gig Workers
Freelancers, content creators, gig workers, or home-based business owners with fluctuating income should file an ITR every year. It helps formalize your earnings, track growth, and qualify for business benefits in the future.
10. Peace of Mind and Financial Discipline
Filing an ITR—even with no tax due—develops healthy financial habits, ensures you don’t lose potential refunds, and protects you from future complications.
It’s a small effort today that ensures long-term financial clarity.
How OurTaxPartner.com Can Help
At PEAK Business Consultancy Services, we simplify the process for first-time and NIL income filers. Whether you’re a student, retired individual, housewife, or freelancer, we ensure that your ITR is filed correctly and securely—without any stress.
- Assistance in claiming TDS refunds
- Capital loss reporting and carryforward
- Zero tax returns for credit/visa applications
- Online and affordable filing with support
Click here to file your ITR with us—even if your income is below the limit.
Conclusion
Just because you are not mandated to file ITR doesn’t mean you shouldn’t. The benefits of voluntary filing are too significant to ignore—from claiming refunds to building a financial identity, improving creditworthiness, and staying compliant with regulations.
Take action today. Start your return filing with PEAK Business Consultancy Services and enjoy the peace of mind that comes with responsible tax filing.
Have questions or need assistance with NIL return filing? Visit www.ourtaxpartner.com/filing-service/income-tax-efiling and talk to an expert today.
