Get 3 Yrs of CCI Pro Membership at Greater Value. Subscribe Now!

What if stopped filing ITR due to gross income below 2.5 lakhs ?

380 views

Save Share

naval rungta

117 Points Posted on 17 July 2022

This is for a senior citizen friend. He stopped filing ITR due to income below 2.5 lakhs and was exempted from filling ITR.

Recently he was adviced to file ITR so that he can get loan from bank.

What happens if he files ITR just for the sake of loan option ?

Please guide!

Replies (3)

Quick Summary

This discussion addresses whether a senior citizen, whose income is below the 2.5 lakh threshold and thus exempt from filing an Income Tax Return (ITR), should file one solely to obtain a bank loan. While generally not required, filing an ITR might be necessary for loan applications, even if income is below the taxable limit, as banks often require several years of returns as proof of financial activity.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121521 Points Posted on 17 July 2022

Neither any gain or loss, but he may not get loan at the age of 65, even after filing return.

Eswar Reddy S

CFO- at NHTF

15022 Points Posted on 17 July 2022

ITR should not be filed as per your wish .

There should be proper evidence for reporting income in ITR .

You can not alter the income just for loan purposes.

CA Rashmi Gandhi

Chartered Accountant

44442 Points Posted on 17 July 2022

There is no issue you need to file ITR only if income is above 2.5 lakhs.

However for bank loan, you need last 3 years returns so you can file return even if income is below 2.5 lakhs