Why Should Taxpayers Need to File Income Tax Returns Within Deadline? Check 5 Benefits

ITR Filing Latest Update: If the taxpayers don’t file ITR within the deadline, they can face a penalty up to Rs 10,000 and other consequences per the Income Tax Rules.

Income Tax Return ITR Filing Latest Update: With just a few days left for the ITR filing deadline to end, many taxpayers must have started filing the Income Tax Return and it is advised that all must submit their ITR for FY 2021-22 before the end of the deadline to avoid any fine or penalty. The taxpayers must know that the due date to file the annual ITR is generally July 31 and unless the Centre extends it further, July is the month when this process should be completed.

As the individual taxpayers are in the process of filing their ITR, they must know the benefits of filing the ITR before the deadline. Check some of the top benefits of filing ITR on time.

Penalty Can Be Avoided

If the taxpayers don’t file ITR within the deadline, they can face a penalty up to Rs 10,000 and other consequences per the Income Tax Rules. Moreover, the delay in filing the ITR can lead to interest on the tax payable under Section 234A of the Income Tax Act 1961.

Legal Consequences

In case the ITR filing gets delayed, the Income Tax department can send a notice and that can add to your legal troubles. If the I-T department is not satisfied with the response to the notice and finds fair ground, a legal case may also follow.

Can Get Loans Easily

If the taxpayers have a clean track record in Income Tax Returns filing, then they can get loans approved from banks or lenders easily. For loan applications, the banks usually require the borrowers to provide a copy of the ITR statement as proof of their income. ITR filing documents are a mandatory document for any formal loan approval. Individual taxpayers who don’t file tax returns regularly will struggle to get loans approved from institutional lenders.

Carry Forward Losses

The Income Tax guidelines allow forwarding the losses to the next financial year if the ITR filing is done before the deadline. Moreover, this also allows the taxpayers to reduce their tax liability of future incomes.

Quick Visa Processing

Many foreign embassies need individual applicants to submit their ITR filing documents while applying for visas. Having a clean track record of tax filing withing the deadline actually facilitates the visa application process.