Why filing your Income Tax Return in 2024–25 matters, even with zero tax liability

The deadline for filing an Income Tax Return (ITR) for the 2024-25 financial year has been extended to 15 September 2025, despite many people with no taxable income questioning the necessity of filing. Here are five essential reasons to file an ITR 

New Delhi: Many people without taxable income are wondering if they really need to file their Income Tax Returns (ITRs) as the deadline for submitting them for the fiscal year 2024–2025 draws closer. The deadline has been extended to September 15, 2025, for the assessment year 2025–2026. The answer is a resounding yes. Even if you are not obligated to pay taxes, filing your ITR has many long-term advantages and financial benefits.

ITR submissions have been steadily increasing, according to government data, with over 9.19 crore returns filed in FY 2024–2025 compared to 6.72 crore in FY 2020–2021. Even among taxpayers with no tax obligations, this increase demonstrates the growing understanding of the importance of voluntary compliance.

Even if you have no taxes owed, you should still file your ITR for the following five important reasons:

Important For Applications For Visas

When processing visa applications, nations like the US, UK, Canada, and France require ITRs from previous years. These documents help embassies assess a candidate's financial stability, increasing the applicant's credibility.

Required for Personal Loan Approvals: Regardless of taxable income status, banks and other financial institutions usually require ITRs for the previous two to three years as evidence of income. This speeds up loan approvals for education, home, auto, and personal loans and assists lenders in confirming your financial situation.

Requesting Tax Refunds: Filing an ITR is necessary if tax has been withheld at source (TDS), such as on dividend income or advance tax payments.

Even if you owe no taxes, you should still file your ITR for the following five reasons:

Crucial for Applications for Visas

When processing visa applications, countries like the US, UK, Canada, and France require ITRs from previous years. These documents increase a visa applicant's credibility by helping embassies assess their financial stability.

Required for Approvals of Personal Loans: Regardless of taxable income status, banks and other financial institutions usually require ITRs for the previous two to three years as evidence of income. This speeds up loan approvals for personal, home, auto, or school loans and assists lenders in confirming your financial situation.

Requesting Tax Refunds: In order to request any refunds, an ITR must be filed if tax has been withheld at source (TDS), such as on dividend income or advance tax payments. The refund procedure cannot begin until your return has been submitted.

Carry Forward Capital Losses: By submitting your ITR, you can deduct future gains and lower your tax obligation by carrying forward both short-term and long-term capital losses. Filing consistently over many years also improves your credit score and shows that you manage your money well.

Proof of Income and Legal Compliance: The ITR is the official proof of income for retirees, gig workers, and freelancers for a number of uses, such as submitting tenders, applying for loans, and claiming subsidies. Additionally, it indicates adherence to tax regulations, which boosts your reputation in official and financial contexts.