Advantages of Paying Taxes:

Loan approvals:

• Filing taxes will help you to get easy loan approvals (Home loans, vehicle loans etc
• ITR copies are mandatory to get loans.

Visa applications: 

• This is because income tax returns are a proof that you are not trying to leave the country to avoid taxes. 
• Many foreign consulates require you to furnish your income tax returns of the previous years during the visa interview. 
• This is mandatory for the UK, US, Europe, and Canada, but not so much for South East Asian countries and the Middle East. 

Self-employed individuals:

• Freelancers, consultants, entrepreneurs, and partners of firms are not eligible for the Form 16
• If their annual income exceeds the basic exemption limit, then ITR receipts can be shown as proof of income.

Carrying forward of losses:

• Short-term or long-term capital losses are usually carried forward to be adjusted against the capital gains made in the following years.
• The long-term capital loss of one year can be carried forward for up to 8 years that immediately succeed the year in which the loss had occurred. 
• However, this can only be availed if income tax returns have been filed.

Claiming tax refunds: 

• Any refunds that are due from the IT Department can only be claimed if income tax returns have been filed. 

Compensation: 

• For self-employed individuals, ITR receipts will be useful in order to claim compensation in the event of a motor vehicle accident that results in a disability or accidental death.