Missed filing your ITR? You could lose tax refunds, creditworthiness, loan approvals, and visa chances

Many assume income tax returns are only for the well-paid. But skipping this annual ritual — just because your earnings are below the taxable limit — could be a costly oversight. Filing an ITR isn't just a compliance formality; it's a financial tool that opens doors to refunds, smoother investments, and quicker approvals for loans and visas.

Irrespective of income levels, financial experts urge individuals to file their ITR before the July 31 deadline. Here’s why filing one makes sense — even if tax isn't due:

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Requesting a tax refund

If tax deducted at source (TDS) has been withheld from income — whether through salary, commission, interest, or professional fees — filing an ITR is the only way to claim a refund. Without filing, excess tax paid stays with the government.

Carrying forward financial losses  

Losses from stocks, real estate, or business ventures can be offset against future profits — but only if an ITR is filed. Skipping it means losing the ability to reduce your future tax liabilities with current losses.

Increased financial credibility  

Whether starting a business, investing, or purchasing property, an ITR enhances financial credibility. It smooths interactions with banks and financial institutions and strengthens your credit profile.

Easier loan approval  

Loan applications — personal, auto, or home — typically require proof of income. An ITR serves as verified documentation, helping secure loans at better interest rates. Without it, lenders may charge more or reject the application altogether.

Easy visa process  

For travel to destinations like the US, Canada, Europe, or Australia, embassies often ask for ITRs as proof of financial stability. Having filed returns can speed up and support your visa application process.