I don’t have Tax Liability: Should I still file my ITR?

Individuals who earn less than Rs. 2.5 lakh a year and have no tax liability are not liable to pay any taxes, as they don’t come under the tax slab. However, even if you don’t possess an income tax liability, it is usually recommended to file an income tax return (ITR) if you fulfil the desirable conditions. though it is not mandatory to file an ITR if your income does not fall under the tax limits.

Previously, the due date to file the Income Tax Return (ITR) was extended till September 15, 2025 for assessment year 2025-26. Numerous individuals with no taxable income are anxious to know if filing in their case is at all required.

The answer to the above is easy: submitting your ITR provides crucial long-term advantages even when your total tax liability is zero. After filing your ITR make sure you have effortless personal loan approvals, quicker refunds, and stronger financial credibility. It also supports avoiding tax examination and protects access to government benefits and schemes.

Government shared the data record of India, which shows over 9.19 crore ITR filings in FY 2024-25. however, Only 6.72 crore ITRs were filed in FY 2020-21. Below are listed the Benefits of filing ITR even if you have no tax liability:

• Essential for visa applications

Filing an ITR helps in maintaining a record of your income and will help in the visa application process and other government benefits. This will help them decide whether they should admit a particular from visiting their country for work or not.

• Mandatory for personal loan approvals

Filing an ITR will also be beneficial if you are applying for loans. It will help institutions decide whether they should approve your loan or not.

• Claiming tax refunds

If you have paid taxes through TDS (Tax Deduction at Source) or advanced tax, and your tax liability is less than the amount paid, you will be eligible for a tax refund. Filing an ITR is essential to claim the refund.

• Carry forward capital losses

In case you have incurred losses in a particular FY, such as capital losses from the sale of investments, it’s essential to file ITR to carry forward those losses.