Benefits of Filing ITR Even If Below Taxable Limit | H&R Block
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Benefits of filing zero income tax return in india


As children, sitting in the classroom, learning about the square root of Pi, many of us probably wondered, “when will I ever need to know this”?  But, we went through the lessons so that we could pass the exams and move on with our life.  And like most of the information we learned in school, which at that point of time, we thought was useless, probably turned out to be useful later in life.  For individuals falling below the taxable income limit, you probably do not realize that filing your tax return can be beneficial to you also, just like the unknown importance of knowing the square root of Pi.

Income Tax Slabs For FY 2018-19

The Budget 2018 announcement saw no changes being made to the income tax slab rates, as outlined below:

Individual and HUF below 60 years

Income Level (Rs) Tax Rate (%)
Up to 2,50,000 Nil
2,50,000 – 5, 00,000 5
5,00,000 – 10, 00,000 20%
More than 10,00,000 30%

[ Read: Income Tax Slab Rates for FY 2017-18 ]

Senior Citizens

Income Level (Rs) Tax Rate % (60yrs-80yrs) Tax Rate % (above 80 yrs)
Up to 2,50,000 Nil Nil
2,50,000 – 5, 00,000 5 Nil
5,00,000 – 10, 00,000 20% 20
More than 10,00,000 30% 30

As an individual falling into the above non-taxable income bracket, you may not see the relevance of filing your tax return since you are in the exempt category.  Moreover, if you have any other investments then your income slab rate might increase, resulting in a higher income bracket and taxes being due.  Conversely, you may also lose out on a tax refund owed to you by not fling your taxes.  Additionally, even if you belong to the exempt category (before 80c deductions), filing your tax return can have a beneficial impact in more than one aspect of your life, that you never probably considered.

Top 5 Benefits of Filing Income Tax Return

A filed tax return is an important and valuable document that can help you in the following situations:

Advantages of e-filing of Income Tax Return

  1. Visa Processing – Whether your plans are in the immediate future or not, if you are planning on traveling abroad, you will realize that visa processing requires that you submit your tax returns for the past few years, to the relevant country’s embassy/consulate, including the UK, Europe, Canada and USA.
  2. Loan Processing – Regardless of the type of loan, most banks will ask you to furnish your tax returns for the past few years to understand your financial situation.  Having your tax returns on hand can speed up your loan processing time.
  3. Carry Losses Forward – As per income tax laws you can carry forward losses (capital loss, business loss, etc.) to offset any future income, for up to eight years consecutively.  So, even if you have fall into the taxable income bracket you can carry forward and adjust your losses against your future taxable income by filing your tax return in time.
  4. Refund – When employed, your employer will deduct TDS on your income.  However, if you have made investments that are tax deductibles, it reduces your taxable income.  So, the TDS deducted can be refunded, but only If you file your taxes.  The same holds true for TDS deducted by any other sources.
  5. Avoid Penalties – While, you may not immediately receive a notice from the tax department for failing to file taxes, you may eventually receive one.  If it turns out you failed to file your returns though you were required to file it, then you might be penalized up to Rs 5,000-10,000 and might face interest payment under section 234A.

So, while in the past you may have avoided filing taxes, this brief lesson in the virtual tax classroom, has hopefully enlightened you on the many benefits of filing your tax return.  So, just as you knowing the square root of Pi, may help you one day in Kaun Banega Crorepati, filing your tax returns has its benefits for your future as well.

To get maximum benefits of filing income tax return, file your IT Return with tax experts at H&R Block India


  • Smart and Hassle-free tax filing experience withdedicated tax expert
  • 100% Secure Online Tax Vault to store all your documents
  • Year-round post filing support
Annalakshmi Ekambaram
Annalakshmi Ekambaram
Annalakshmi is a content writer at H&R Block India. She enjoys writing about Income Taxes in a simplified manner so that everybody can easily understand it.


  1. Tanzeem khan says:

    You have explained very nicely how filing tax will benefit me eventually, but I am still curious too know where square root of pi is used. Ok fine, atleast remind me the value of it. 😛

  2. Raju says:

    Could you please clarify this? Do NRI has to show his foreign income while filing ITR for his income earned in India? Thanks.

    • Sony Pandey says:

      Yes, as an NRI if you are filing your ITR for income earned in India, you will have to show your foreign income earned as well. For a more detailed answer post your query on and our highly qualified tax experts will help you with it.

    • kuldeep singh says:


  3. Shashikant karandikar says:

    We want to know that do indian government it department have policy to give benefits for a regulart income tax payer to get him benefit in monetary terms as reward for being a regular tax payer after 60 years. Some regular financial benefit as regular pension.

  4. Anand kr. Sinha says:

    Is it true that govt is bound to compensate ur family if you die on a accident on the basis of filing IT return. If yes then on wat basis?

  5. Veeran says:

    Hello Friend,
    Regarding the benefits that you mentioned, among the 5, No.4 Refund is not the one you should list in this category i fee. Because, if there is a refund we can claim, obviously we will file returns. There is no necessity to emphasize that in this category. The other 4 are good points. I want to mention one more point, that is, if you have income from unorganized sector and the income is below the taxable income limit. In this case, if you file returns, you can establish that as legal income and you can invest it in future without any questions raised for the source of income.

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