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Income Tax Return (ITR) has to be filed by 31st December for the financial year 2020-21. If you file ITR on time, then not only will you avoid penalty, but you will get many more benefits. CA Ajay Bagadiya is telling you the benefits of filing Income Tax Return on time.
- Due to the delay in filing ITR, the taxpayer has to pay the penalty as well as you do not get many types of income tax exemptions. 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 income tax return, 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.
- If you do not file ITR within the stipulated date, you may have to pay a heavy fine of up to 10 thousand rupees.
- If you do not file ITR on time, you can get a notice from the Income Tax Department. It is beneficial to submit ITR on time to avoid notice.
- According to the rules of income tax, if a taxpayer has not paid advance tax or has paid less than 90% of his liability, then he will have to pay interest penalty of 1% per month
- under section 234B. If you file your return on time, you can save interest on income tax payable.
- If you file ITR before the due date, you can carry forward your loss to the subsequent financial years. That is, in the next financial years, you can reduce the tax liability on your earnings.
More than 4 lakh income tax returns being filed every day
- According to the data of the Finance Ministry, till Sunday, more than three crore Income Tax Returns (ITRs) had been filed for the financial year 2020-21. The number of Income Tax Returns filed daily has crossed four lakhs and is accelerating as the extended date of December 31 approaches.
- According to the statement, the number of returns filed for the assessment year 2021-22 has reached 3.03 crore. Of this, 58.98 per cent are ITR 1 (1.78 crore), eight per cent ITR 2 (24.42 lakh), 8.7 per cent ITR 3 (26.58 lakh) and 23.12 per cent ITR 4 (70.07 lakh).
- Apart from this, 2.14 lakh ITR 5, 91 thousand ITR 6 and 15 thousand ITR 7 have been filed. The process of e-verification through Aadhaar OTP and other methods is important from the point of view of ITR verification and refund, the statement said.
- The ministry has also asked taxpayers who have not filed ITR yet to file their returns at the earliest. The Department is encouraging taxpayers to file their Income Tax Returns on time through media campaigns besides sending e-mails and SMS.
- The department has requested taxpayers who have not yet filed income tax returns for the assessment year 2021-22 to file their ITR at the earliest to avoid last minute rush. The Finance Ministry said, “The Income Tax Department urges all taxpayers to view their Form 26AS and Annual Information Statement (AIS) through the portal for filing e-returns, which will enable them to know that tax deducted at source.” (TDS) and tax payment is correct or not.
Know how to file ITR at home
If you want to file your tax return by visiting the e-filing portal, then you can take the help of these steps-
