Penalty And Loss Of Benefits If You Miss Tax Return Deadline
The deadline for filing an Income Tax Return (ITR) is July 31, just four days away.
To avoid a punishment or penalty and legal implications, taxpayers must submit their ITR for the fiscal year 2021-22 online before the Deadline.
Having a clean track record in Filing ITR affords you certain advantages; read on for more information.
While the deadline for individuals and salaried employees whose accounts do not require auditing is July 31, the deadline for taxpayers whose accounts do require auditing is October 31.
Because of COVID, the government has extended the deadline twice in the last two years. However, the centre has emphasised the necessity of filing your tax return on time and has refused any extension this time.
Why Is It Important to File Income Tax Returns on Time? Important Factors
Avoiding Penalties and Fines:
Failure to file your income tax return by the deadline may result in a $10,000 fine and other penalties, according to the Income Tax Rules. Section 234A of the Income Amount Act of 1961 states that any delay after July 31 may result in interest on the tax due.
To Avoid Legal Proceedings:
In the event of a delay or failure, the Income Tax Department may give you a notice, which will extend your legal troubles. If the I-T department is still dissatisfied with the notice’s response and believes it has a valid claim, a court lawsuit may be filed.
The Advantages of Filing Tax Returns on Time:
Simple Loan Approval:
Having a pristine record of filing income Tax Returns makes it easier to obtain loans from lenders. Borrowers who seek for loans are required to provide a copy of their ITR statement in order for banks to verify their income.
Tax returns must be presented for financial institutions to officially sanction a loan. Loans from institutional lenders may be difficult to obtain for persons who do not file tax returns.
Losses that are carried forward:
If an ITR is filed before the deadline, the income tax regulations allow losses to be carried forward to the following fiscal year. This allows taxpayers to pay less tax on future earnings.
The Income Tax Department notes:
“If a taxpayer incurs a loss from any source under a certain head of income in any year, such loss may be offset against revenue from any other source falling under the same head. Intra-head adjustment refers to the act of adjusting a loss from one source under a certain head of income against income from another source under the same head of income.”
“Following any intra-head adjustments, the next stage is to make inter-head adjustments. If a taxpayer suffers a loss under one item of income and income under another, he can offset the loss under one head [as changed by Finance Act, 2022] against the income under the other “added the information technology department
Read More: Here Are The Rule Changes For Cash Deposits Of More Than 20 Lakh in a Year.
Visa expedited:
When applying for a visa, most foreign embassies require applicants to provide their ITR history. If you have a better record of filing your taxes, your visa application will be completed faster because it clearly displays your income and serves as proof.
How Do I File My Tax Return?
The burden of filing income tax returns has decreased. Long lines and never-ending tension associated with filing taxes on time are no longer an issue.
Online filing, often known as e-filing, allows you to file tax returns easily and from the convenience of your own home or workplace.
Here’s how to use the e-filing portal to file your ITR:
- Go to https://www.incometax.gov.in/iec/foportal to file an e-filing.
- Log in to your existing account if you have one, or create a new one by giving the necessary personal and communication information.
- Once logged in, select the “e-file” tab, followed by “File Income Tax Return.”
- Choose the Assessment year and then click “Continue.”
- Indicate whether you want to file your returns online or offline.
- Choose “Individual” as your filing status, and then select the income tax returns (ITR) you want to file. The ITR -1 form is used by the majority of salaried individuals to file their returns.
- You will then be prompted to select an option for the purpose for filing the ITR. Submit your selection and proceed to the next stage to provide or validate your bank details.
- Declaration tab – Once the taxpayer has completed the ITR-1 form, they must put in the necessary information in the declarations to check that all details provided in the return are correct and full.
- Check the supplied information for accuracy before clicking “Proceed to Validate.”
- Once the income tax return has been filed, taxpayers will receive an SMS/email confirming the filing.
How Do I Get My Income Tax Return?
To avoid stress and fines at the last minute, it is critical to file ITRs on time.
Once you’ve submitted your ITR, the IT department prepares the income tax verification form so that taxpayers can confirm the accuracy of your e-filing. These applications are required if you filed your tax returns without using a digital signature.
The income tax return verification form is simple to obtain:
- Access the Income Tax India website: Click here
- View e-filed tax returns by selecting ‘View Returns/ Forms’.
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