The last day for filing income tax returns is just around the corner. As a taxpayer, you must submit your ITR for FY 2021-22 online before the deadline to avoid any penalty or fine.
The last date of ITR filing for salaried employees and individuals whose accounts need no auditing is July 31. And for taxpayers whose accounts need to be audited, the deadline is October 31.
Although we keep stressing about filing ITR, do we really know the benefits of doing so? Mentioned below are the top benefits of filing ITR on time.
Avert penalties
It is important to file ITR by the due date as failing to do so may invite a ₹ 10,000 penalty and other consequences per the Income Tax Rules. It can also lead to interest on the tax payable under Section 234A of the Income Tax Act 1961.
Easy Loan Approval
Having a clean chit in ITR filing makes it easier for getting loans approved from various lenders. It is compulsory to provide your ITR statement as a proof of your income to the banks while applying for loans. To get the approval of any loan, you will have to provide a copy of your ITR.
Legal Action
Incase of any delay or default, the Income Tax department may send a legal notice to add to your troubles. A legal case may also follow if the IT department isn’t satisfied with your response to their notice.
Carry Forward Losses
Filing your ITR before the due date gives you the option of forwarding your losses to the next financial year. This helps in reducing your tax liabilities for future incomes.
Quicker Visa
Almost every embassy will ask you to submit your ITR history while applying for visas. So having a cleaner record of tax filing makes the process of visa application faster and smoother.
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