As the deadline to file income tax return looms on horizon, the tax payers are supposed to file their return as early as they can. For individuals, the last date to file returns is July 31 for financial year ending March 31, 2022. However, the taxpayers whose accounts are required to be audited such as a company or proprietorship firm, the last date falls on October 31.
Currently, taxpayers are — however — facing some problem in filing the returns. On this, income tax department has issued a statement on July 2 via twitter. “It has been noticed that taxpayers are facing issues in accessing ITD e-filing portal. As informed by @Infosys, they have observed some irregular traffic on the portal for which proactive measures are being taken. Some users may be inconvenienced, which is regretted,” the tweet reads.
Filing tax on time
There are several incentives to file returns on time. “If you have had TDS (tax deducted at source) deducted from your salary, you can claim the same, and it would be refunded to your bank account,” says Neha Nagar, CEO of Taxhelp.in.
It is also important to file income tax returns on time to escape from penalty or fees of late filing.
You may be charged a penalty of ₹5,000 if you are liable to pay tax but haven’t paid it and haven’t filed ITR.
“To escape from notice from non- filing ITR. There are many benefits of filling your Income Tax Returns. The major is easy approval of loans. Loan is required to set up any business, loan is required to buy a house, buy land or for almost any investment,” she says.
For availing loans
In case you want to avail a loan, the first thing lender wants to know is your income tax returns. On the top of it, your overall profile becomes stronger with the passage of time. “For example, if you buy a house in a metro city which costs you ₹70 to 80 lakhs, unless you have that amount in your balance sheet, you won't be able to buy in your name,” says Nagar.
“If you are liable to file the return but due to some reason haven’t filled it then during the assessment you will have to pay various interests and penalties under section 234A,234B,234C, 234F. Further you will become assessed in default and there start endless litigation,” she adds.
So, it is highly recommended to file your ITR, in case you feel that total income is more than ₹2,50,000 per annum.
Other benefits of filing returns on time include carrying forward of loss and other few elements which are not available in case you don’t file your return.