Nisharg

The taxes that apply to you are governed by the Income Tax Act 1961. Thus, you are required to pay taxes if you fall above the exempt criteria.
So, if you are eligible to pay taxes on your income and yet still fail to file your Income Tax Returns, then you attract charges
The income tax officer can levy a penalty of up to Rs 5000 Rs. Other serious punishments can also occur if you do not file returns.
Thus, you should file ITR to be safe from such penalties and punishments.

To reduce the burden on the taxpayers and to encourage more people to pay their taxes, the government allows certain deductions to you.

a) These deductions and exemptions can be availed in some investments and thus help in reducing the tax you ultimately pay.

b) TDS and rebates can also be claimed back.

But to have access to these tax benefits, you are required to file an income tax return. If you have not filed ITR you cannot claim deductions as well.