To carry forward losses

What happens when there is a capital loss in a year? A long term capital loss can be adjusted only against a long term capital gain but a short term capital loss can be adjusted against either long term gain or short term gain. Thus if you do not file tax returns, then it will not be possible for you to carry forward the capital losses in order to adjust it with any capital gains made in the earlier years.

Visa processing

When you plan to travel abroad, especially to the U.S., UK, Canada and Europe, oversees consultant will ask you to display the ITR receipts for probably the past couple of years. In some cases they might ask for receipts of past three years too in the visa interview. This is to ensure that the person who travels has a regular income in India, thus they will return to the country.

So while travelling abroad it is safe to carry the ITR receipts, salary slips as well as form 16 independent of whether it’s a business or leisure trip.

Read More: No More Hurdles To Generate Your E-Verification Code