Income Tax Return: Why you need to file your ITR on time
October, 30th 2019
In the Union Budget 2017, a new Section 234F was announced by the government which is applicable for returns filed from FY 2017-18 onwards. The maximum penalty is Rs 10,000
Taxpayers are required to file their income tax return (ITR) before the set due date of the assessment year (AY). The government normally gives a 4-month window for taxpayers to consolidate their income details and file their ITR every AY. If the returns are not filed by the given due date, you may face penalties or other consequences.
Deadline for filing ITR July 31 of the AY for all taxpayers who are not liable to get their accounts audited. In case of taxpayers whose accounts are liable to be audited under any law, the due date will be September 30 of the AY. If an assessee is required to furnish a report under Section 92E of the Income Tax Act pertaining to international/specified domestic transaction, the deadline will be November 30 of the AY.
Benefits of filing ITR Filing ITR is an annual activity that is considered to be both social and moral responsibility of every citizen of the country. Apart from that, there are many other benefits which are mentioned below:
Loan or card company may seek your return If you are planning to apply for a vehicle loan (2-wheeler or 4-wheeler), house loan, etc., then it is recommended to file your returns as the loan company may request it. Consider filing your spouse’s returns too, if you want to apply for a loan as a co-borrower. In some cases, even credit card companies seek proof of return before issuing a card.
Claim tax refund If you are to receive a due refund from the Income Tax department, you must file your ITR on time and get it as early as possible.
Claim adjustment against past losses To claim an adjustment against various past losses incurred by an individual or a business, it needs to be recorded in the tax return in a financial year.
To avoid penalty and prosecution Not filing your ITR on time can lead to a penalty and other inconveniences. You can avoid this by proactively filing your ITR.
Consequences of late filing ITR Apart from a penalty, there are many other consequences that you may have to face due to the delayed filing of your ITR. In the Union Budget 2017, a new Section 234F was announced by the government which is applicable for returns filed from FY 2017-18 onwards. The maximum penalty is Rs 10,000.
Less time to revise your return If you make a mistake while filing your ITR, under the changed rules, you can make the necessary changes before the end of the relevant assessment year. Earlier, taxpayers had two years to revise and resubmit their inaccurate ITR.
Interest on delay of filing ITR Under Section 234A, if a taxpayer does not file ITR before the deadline, interest will be levied at 1% every month on the unpaid tax amount. Further, it must be noted that one cannot file ITR unless the taxes are paid.
Delayed refunds If you are entitled to receive refunds from the I-T department, you should file ITR before the due date. You can file your ITR on time from the government portal and stay away from tax notices and other dire consequences.