Why should you file income tax return on time? important reason
The countdown to the last date for filing Income Tax Return (ITR) is July 31, just four days away.
Taxpayers have to submit their ITR online for the financial year 2021-22 before the deadline ends to avoid any penalty or penalty and legal consequences.
Having a clean track record in filing ITR brings you certain benefits; Read on for more details.
The last date for filing ITRs for individuals and salaried employees whose accounts are not required to be audited is July 31, while the deadline is October 31 for taxpayers whose accounts need to be audited.
In the last two years, the government extended the deadline due to COVID. but Center has stressed on the importance of filing your tax return before the deadline and denied any detail This time.
Why should you file income tax return on time? important reason
Avoid fines and fines:
As per the income tax rules, failing to file your income tax return by the deadline can lead to a fine of Rs 10,000 and other fines. Any delay after July 31 may attract interest on the tax payable as per section 234A of the Income Tax Act, 1961.
To avoid legal action:
In case of delay or failure, the Income Tax Department may send a notice, which will prolong your legal issues. If the IT department is still dissatisfied with the response to the notice and determines that it has a valid point, a court case may also follow.
Benefits of filing tax returns on time:
Easy Loan Approval:
Having an impeccable record of filing income tax returns makes it easy to get sanctioned loans from lenders. Banks demand a copy of the ITR details from the borrowers applying for the loan to verify their income.
A tax return must be submitted for financial institutions to officially approve the loan. Those who do not file tax returns may find it difficult to get loans approved by institutional lenders.
Carry Forward Loss:
If an ITR is filed before the deadline, the income tax rules allow the loss to be carried over to the next financial year. It enables taxpayers to pay less tax on their future income.
The Income Tax Department notes:
“If in any year the taxpayer has suffered loss from any source under a particular head of income, he is allowed to set off such loss against income from any other source falling under the same head. Under the process of adjustment of loss from source, a particular head of income against income from other sources under the same head of income is called inter-head adjustment.
“The next step after making the intra-head adjustment (if any) is to make the inter-head adjustment. If in any year, the taxpayer has suffered loss under one head of income and income under other head of income , so he can adjust the damage caused by a head [As amended by Finance Act, 2022] against income from other head,” the IT department said.
Early Visa:
Most foreign embassies demand that people submit their ITR history while applying for a visa. If you have a better record of filing your taxes, an application for a visa can be processed more quickly, as it clearly shows your income and serves as a proof document. .
How to file Income Tax Return?
The hassle of filing income tax returns has been reduced. Long lines and never-ending tension associated with timely tax submission are no longer present.
Online filing, often referred to as e-filing, makes it easy to file returns quickly and from the comfort of your home or office.
Here’s how to file your ITR through the e-filing portal:
*Visit the e-filing website https://www.incometax.gov.in/iec/foportal.
* If you have already registered then log in to your account or create a new registration by providing required personal and communication details.
* After logging into the portal, click on the “e-File” tab and then on “File Income Tax Return”.
*Select Assessment Year and click “Continue”.
* Submit your choice whether you want to file your return online or offline.
*Select “Individual” in the status applicable to your filing and then select the Income Tax Return (ITR) you wish to file. Most of the salaried individuals file their returns along with ITR-1 form.
* You will then be asked to specify the reason for filing ITR from the available options. Submit your choice and proceed to the next step to provide or verify your bank details.
* Declaration Tab – Once the taxpayer has filled all the details in the ITR-1 form, they have to fill the requisite information in the declarations, verifying that all the details given in the return are correct and complete.
* Verify the submitted information and click on “Proceed to Validate” to avoid any errors.
*Once the Income Tax Return is filed, taxpayers will receive an SMS/email notification confirming the ITR filing.
How to download Income Tax Return?
It is important to file ITR on time to avoid last minute stress and penalty.
Once you submit your ITR, the IT department generates Income Tax Verification Forms so that taxpayers can verify the integrity of your e-filing. These applications are when you have filed your return without digital signature
Income Tax Return Verification Form can be downloaded in easy steps:
1. Log on to Income Tax India website: click here Or visit https://portal.incometaxindiaefiling.gov.in/e-Filing/UserLogin/LoginHome.html?lang=eng.
2. View e-filed tax returns by clicking on ‘View Return/Form’ option