It is mandatory for everyone to file an income tax return. However, a taxpayer whose net taxable income is less than the minimum tax slab, i.e., INR 2.5 lakh is exempted from mandatory tax filing. It is mandatory for a taxpayer who wants to claim tax refunds of TDS deducted to file income tax returns. Even though tax filing isn’t mandatory for some isndividuals, it has some benefits. Claim Tax refunds: For any TDS that has been deducted can be claimed only by tax filing. Applying for a loan: While applying for a loan, the eligibility and the loan amount sanction depends on the assessee income. The tax filing documents are processed for this. Carry forward of Losses: The taxpayer can always carry forward the losses to set them off against capital gains. However, this is only allowed if one is filing their taxes for the assessment year.