Why should taxpayers file their tax returns on time? Check 5 benefits

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Last update of the RTI tax return: With just a few days left before the end of the ITR filing deadline, many taxpayers must have started filing the tax return and everyone is advised to submit their ITRs for the 2021-22 fiscal year before the end of the period to avoid any fine or penalty. Taxpayers should be aware that the deadline for filing the annual ITR is generally July 31 and unless the Center extends it further, July is the month in which this process must be completed.Read also – Filing an income tax return (ITR): 10 things to know before filing an ITR for the 2021-22 financial year

As individual taxpayers are in the process of filing their ITRs, they should know the benefits of filing the ITRs before the deadline. Check out some of the main benefits of filing an ITR on time. Also read – TDS rules have changed! Doctors, social media influencers have to pay extra tax; Check details here

The penalty can be avoided

If taxpayers fail to file ITRs on time, they may face a penalty of up to Rs 10,000 and other consequences as per income tax rules. In addition, delay in filing the ITR may result in interest on tax payable under Section 234A of the Income Tax Act 1961. Also Read – TDS on Crypto, Digital Assets: CBDT Issues New Guidelines | Check details here

Legal consequences

If the ITR filing is delayed, the income tax department may send a notice, which may add to your legal problems. If IT is not satisfied with the response to the notice and finds just cause, legal action may also follow.

Can get loans easily

If taxpayers have a good track record of filing tax returns, they can easily get loans approved by banks or lenders. For loan applications, banks usually require borrowers to provide a copy of the ITR statement as proof of income. ITR filing documents are a mandatory document for any formal loan approval. Individual taxpayers who do not regularly file tax returns will find it difficult to get loans approved by institutional lenders.

Report losses

Income tax guidelines allow losses to be transferred to the next year if the ITR is filed before the deadline. In addition, it also allows taxpayers to reduce their tax liability on future income.

Fast visa processing

Many foreign embassies require individual applicants to submit their ITR filing documents when applying for a visa. Having a clean tax filing on time actually makes the visa application process easier.

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