Benefit of Filing Income Tax Return for an individual and HUF, and for whose income is below exemption limit are as follows:
1. Proof of Income/Proof of net worth: The best authentic document in support of claim of income level is the Income tax return of the person.
2. Eligibility in Loan application: Income tax return of the last three years is basic documents required for loans.
3. Accidental claims: In the cases involving accidental claims against insurance companies, the court may apply simple formula to arrive at the claim amount by multiplying the yearly income in ITR with year of expected life of deceased.
4. Obtaining Visa: Foreign embassies/consulates of many countries ask you to furnish last three years Income tax returns or current year Income tax return while applying for a visa.
5. For startup funding: If you are looking to raise funds, point to note that many investors study Income tax returns to adjudge the business stability, profitability and other cost parameters in the business.
6. Security against suspicious black money: Income tax return of every year substantiates the income that will not be at risk of being termed as black money.
7. Buying life insurance with high life cover: Some insurance companies always ask for Income tax return while providing high life cover to verify your annual income.
8. Obtaining Government tender: Very often, when government tender of high value is being awarded, furnishing income tax return is a must to apply for it to justify the business credentials of a bidder especially.
9. Credit card application: If anyone wants to have a high limit credit card then your income tax return may help to get it.
It is advisable that even if you are not legally bound to file your income tax return i.e your income is below exemption limit, you should file ITR, as filed income tax return may be useful in the above situations(illustrative only).