This is the time to file your income tax returns in time
In India, the month of July every year is considered the month of return filing whereas the 31st of July usually is the last day of filing the income tax returns if not further extended by the government. This is the last date for ITR filing of individuals and salaried employees whose accounts are not required to be audited is July 31. For taxpayers whose accounts need to be audited, the deadline is October 31 o every year.
So, now we are around the corner of the last date of filing our individual tax returns for the Financial Year 2021-2022 and many persons are now rushing toward filing their returns from their Chartered Accountants. On the other hand, taxpayers should also note that there are various ITR forms for individuals depending on their income sources and other criteria. One must select the correct form to file their income tax return and file it within the due date.
We always read in the newspapers and also watch on television where the government posts advertisement to furnish the income tax returns on time and avail the benefits. We get ourselves under the stress of filing the returns but don’t think about its benefits. Let’s discuss some of the key benefits of filing the return on time:
1. If any individual fails to file an ITR by the due date may invite a ₹ 10,000 penalty and other consequences
2. Delay in ITR filing can also lead to interest on the tax payable under Section 234A of the Income Tax Act 1961.
3. Having a clean track record in Income Tax Returns filing makes getting loans approved from lenders easier. The first requirement by any banker for approving the loan is the ITR returns to check the financial health of the individual
4. The Income Tax rules allow forwarding the losses to the next financial year only if the income tax return is filed within the due date
5. Delay in ITR filing can also lead to interest on the tax payable under Section 234A of the Income Tax Act 1961.
Although ITR might be filed after the deadline passes, a late filing fee will be charged by the department. If the individual income is above 5 lakh, then a penalty of rupees five thousand will be imposed and if the income is below 5 lakh then a penalty of rupees 1000 is imposed.
All the taxpayers who are required to furnish their income tax returns from the income tax department should file their returns on time and avail of the above-mentioned benefits and also have a clear financial image before the income tax department.
