As per the provisions of Income Tax Act, 1961, filing of income tax is compulsory under certain circumstances. Also, filing of ITR is required for ordinary residents holding overseas assets. Even if any person's income is not taxable, still that person can avail following benefits after filing income tax returns. 1) Residence Proof: A tax assessment order can be used as a proof of residence for applying for Aadhaar or passport. 2) Hassle free loan processing: Generally, income tax returns of last three years are required if a person intends to take any housing loan, education or vehicle loan from the bank. 3) Processing credit card applications: Copies of tax returns are also required as proof for processing credit card applications. 4) Recording of high-value transactions: High-value transactions such as purchase of property, buying a car, investing in mutual funds, etc., are reported to the income tax department. So, by filing income tax returns, one can report thes...