ITR Filling: The last date for filing Income Tax Return i.e. ITR has passed on December 31, 2021 this year (Financial Year 2020-21). There are many people who have not filed ITR. If you have not filled it yet, then you can fill it with late fee till March 31, 2022.
Under section 139(1) of the Income-tax Act, for non-filing of return within the prescribed time limit for any assessment year, penalty under section 234A is levied. Billed ITRs can be filed by March 31, 2022 with a penalty of Rs 5,000. Earlier the fine amount was Rs 10,000. If the total income of the taxpayer does not exceed five lakh rupees, then he will have to pay a fine of one thousand rupees only. If the income is less than 2.50 lakhs, the return can be filed without penalty.
There are many disadvantages of not filing ITR on time. On the other hand, if you fill the ITR at the right time, then there are many benefits too. Rather say that every person who is employed or doing business should fill ITR. Let us understand its advantages and disadvantages in detail.
Harm
- If you do not file ITR by the stipulated date, you may have to pay a heavy fine of up to Rs 5000.
- There will be no fear of getting notice. You can get a notice from the Income Tax Department for not filing ITR on time.
- If a taxpayer has not paid advance tax or has paid less than 90% of his liability, he will have to pay an interest penalty of 1% per month under section 234A. If you file your return on time, you can save interest on income tax payable.
- The loss will not be able to be carried forward for the subsequent financial years. That is, in the next financial years, you will not be able to reduce the tax liability on your earnings.
- This does not give exemption under Section-10A and Section-10B of the Income Tax Act. At the same time, you will not get the exemption under Section-80IA, 80IAB, 80IC, 80ID and 80IE. Apart from this, due to late filing of ITR, the taxpayer will also not get the benefit of deduction under Section-80IAC, 80IBA, 80JJA, 80JJAA, 80LA, 80P, 80PA, 80QQB and 80RRB of the Income Tax Act.
Advantages
Tax refund is available only after filling ITR
Even if you do not come under the purview of income tax, you should still file a return. If you file ITR, then it gives you many benefits. Here are the benefits of filing ITR…
For claiming tax refund: In order to claim tax refund, it is necessary to file ITR. When you file ITR, the Income Tax Department does its assessment. If a refund is made, it is directly credited to the bank account.
Required for Visa: Visa authorities of many countries ask for ITR of 3 to 5 years for visa. Through ITR, they check that the person who wants to come to their country, what is his financial status.
Remains proof of income: A certificate is available on filing ITR. Whenever ITR is filed, Form 16 is filled with it, Form 16 is available from where the person is doing the job. In this way an officially certified document is obtained, which proves that the person has an annual fixed income of so much money. Getting a registered proof of income helps in proving credit card, loan or own credit.
Ease of getting bank loan: ITR is the proof of your income. It is accepted by all government and private institutions as income proof. If you file ITR regularly, then you can easily get loan from the bank.
Also serves as address proof: The ITR receipt is sent to your registered address, which can act as an address proof. Apart from this, it also acts as income proof for you.
ITR is necessary to start your own business: If you want to start your own business then it is very important to fill ITR. Apart from this, if you want to get a contract for any department, then you will have to show ITR. To take a contract in any government department, ITR for the last 5 years has to be given.
Insurance companies ask for ITR for more insurance cover: If you want to take an insurance cover (term plan) of one crore rupees, then insurance companies can ask you for ITR. In fact, they rely on ITR to know the source of your income and check its regularity.
