There is no harm in filing ITR even income is below the Basic Exemption limit. Filing ITR will help you in maintaining the record of your annual income.
1. It helps in buying Insurance (Term, Medical etc.):
Insurance Companies need 3 years of ITR copy before giving any Term Loan or any Insurance. You will also need ITR for 3 years for any type of vehicle insurance. So if you filed the ITR then it can be beneficial to you.
2. It is an Income Proof:
For Small businessmen & low salaried class people, ITR is the only document of Income Proof. ITR is the most important document for your income proof.
3. It helps in Hassle-free visa application procedure:
At times visa authorities ask for copies of past tax returns, hence to apply for a visa a tax return would be required to be filed.
4. It helps in getting TDS Refund on Investments:
If TDS is deducted on your income which is below the basic exemption limit, the only way to get back the TDS amount is to file the Return & Claim it as a refund.
5. Avoid penalties or notice from the tax department:
From the Financial year, 2017-18 Rs 5,000 to 10,000 would be levied for non-filing of ITR. You may receive notice from the tax department for non-filing of Income-tax return. To avoid pena lties or notice from the tax department, you must file your Income-tax return.
