The benefits of filing ITR on time include the following, -When a person applies for any loan, lenders review their creditworthiness. Their ITRs are often the first point of reference in such cases. Hence, filing ITRs on time can improve the chances of getting loans sanctioned as well as can provide the benefit of pre-approved loans.  -ITRs can also be used as KYC for important purposes like applying for a visa or passport or loans. -Filing of ITRs gives the benefit of set-off and carrying forward of losses. This reduces the ultimate tax liability of the taxpayers against future gains.