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

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!

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3 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178371 Points)
Replied 17 July 2022

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

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Eswar Reddy S (CFO- at NHTF) (58275 Points)
Replied 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) (86323 Points)
Replied 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

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