ITR Filing: Timely filing of return not only does not free you from penalty but also provides many other big benefits like quick approval of loan application.
ITR Filing: The deadline for filing Income Tax Return for the assessment year 2021-22 (FY 2019-20) is 31 December 2021. A reminder should be set by all the taxpayers who have filed returns so far. Timely filing of returns not only does not free you from penalty but also provides many other big benefits such as quick approval of loan application. Apart from this, refund is also available quickly on filing ITR on time.
According to the Income Tax rules, those with an annual income of more than Rs 2.5 lakh should file ITR. According to the Income Tax rules, income up to Rs 5 lakh is tax free, but experts believe that even if you do not have any tax liability, you should file ITR. Below are some of the benefits of filing ITR on time.
Interest saving
If ITR is not filed on time, then interest may have to be paid on tax liability. It can save interest if ITR is filed on time under the provisions of section 234A and 234B. According to the Income Tax rules, if a taxpayer has not paid advance tax or has paid less than 90 per cent of his liability, he will have to pay interest penalty of 1 per cent per month under section 234B, till the tax liability is paid. Don’t be
Penalty savings of Rs 10,000
If you are not able to file ITR within the due date, you may have to pay a heavy fine of up to Rs 10,000. In such a situation, to avoid this penalty, file ITR before the due date.
No notice from Income Tax Department
If you do not file ITR on time, you can get a notice from the Income Tax Department. This can prove to be an unwanted headache. In such a situation, it is necessary to file ITR on time to avoid any such unwanted trouble.
Loan approval easy
When you apply for the loan, the bank or other financial institution asks you for a copy of the ITR statement as proof of income. The ITR report is a mandatory document for the approval of loan applications. Those who do not file ITR, they face a lot of problem in getting the loan. In such a situation, if you are planning to take a loan in the near future, then make sure that you are filing ITR on time.
Carry forward loss
As per Income Tax rules, if you file ITR before the due date, then you can carry forward your loss for the next financial years. With this, you can reduce the tax liability on your earnings in the next financial years.
