The countdown for the last date for filing Income Tax Return (ITR) is July 31, just four days away.
Taxpayers must submit their ITR for the financial year 2021-22 online before the end of the deadline to avoid any fine or penalty and legal consequences.
Having a clean track record in filing ITR gives you some benefits; read for more details.
While the last date for ITR filing of individuals and salaried employees whose accounts don't need to be audited is July 31, the deadline for taxpayers whose accounts must be audited is October 31.
Over the last two years, the government extended the deadline because of COVID. But the centre has stressed the importance of filing your tax return before the deadline and has refused any extension this time.
Why Should You File Income Tax Returns On Time? Important Reasons
Avoid Penalty And Fines:
According to the Income Tax Rules, failing to file your income tax return by the deadline may result in a Rs 10,000 fine and other penalties. Any delay beyond July 31 can attract interest on the tax due, per Section 234A of the Income Tax Act of 1961.
To Steer Clear Of Legal Action:
The Income Tax department may send a notice in case of a delay or failure, which would prolong your legal issues. A court case may also follow if the I-T department is still dissatisfied with the notice's response and determines that it has a valid point.
Benefits Of Filing Tax Returns On Time:
Easy Loan Approval:
Having a spotless record of filing income tax returns makes getting loans approved from lenders simpler. Banks demand a copy of the ITR statement from borrowers who apply for loans to verify their income.
Tax returns must be submitted for financial institutions to approve a loan officially. It may be difficult for those who don't file tax returns to have loans approved by institutional lenders.
Carry Forward Losses:
If an ITR is filed before the deadline, the income tax regulations permit carrying over losses to the following fiscal year. This enables taxpayers to pay less tax on their future income.
The Income Tax Department notes:
"If in any year the taxpayer has incurred loss from any source under a particular head of income, then they are allowed to adjust such loss against income from any other source falling under the same head. The process of adjustment of loss from a source under a particular head of income against income from other source under the same head of income is called intra-head adjustment."
"After making intra-head adjustment (if any) the next step is to make inter-head adjustment. If in any year, the taxpayer has incurred loss under one head of income and is having income under other head of income, then he can adjust the loss from one head [As amended by Finance Act, 2022] against income from other head," added the I-T department.
Most foreign embassies demand that people present their ITR history when applying for visas. An application for a visa can be processed more quickly if you have a better record of filing your taxes, as it clearly shows your income and acts as a proof document.
How To File Income Tax Return?
The hassle of filing income tax returns has diminished. Long lines and never-ending stress related to submitting taxes on time are no longer present.
Online filing, often known as e-filing, makes it simple to file returns quickly and from the comfort of your home or office.
Here is how to file your ITR through the e-filing portal:
* Go to the e-filing website, https://www.incometax.gov.in/iec/foportal.
* Log in to your account if you have already registered or create a new registration by providing the required personal and communication details.
* Once logged in to the portal, click on the "e-file" tab and then on "File Income Tax Return."
* Select the Assessment year and click on "Continue."
* Submit your choice whether you wish to file your returns online or offline.
* Select "Individual" in the status applicable to your filing and then choose the income tax returns (ITR) you wish to file. Most salaried individuals file their returns with ITR -1 form.
* You will next be asked to specify the reason for filing ITR among the available options. Submit your choice and move to the next step to provide your bank details or validate them.
* Declaration tab – Once the taxpayer fills all details in the ITR-1 form, they are required to fill in requisite information in the declarations verifying that all details provided in return are correct and complete.
* Verify the submitted information to avoid any error and click on "Proceed to Validate."
* Once the income tax return is filed, taxpayers will receive an SMS/ email intimation verifying the ITR filing.
How to Download Income Tax Return?
It is crucial to file ITRs on time to prevent stress and fines at the last minute.
The IT department creates the income tax verification form once you've submitted your ITR so taxpayers can confirm the integrity of your e-filing. These applications are if you filed your returns without a digital signature.t
The income tax return verification form can be downloaded in easy steps:
1. Log in to the Income Tax India website: click here or visit https://portal.incometaxindiaefiling.gov.in/e-Filing/UserLogin/LoginHome.html?lang=eng
2. View e-filed tax returns by clicking on the 'View Returns/ Forms' option