Income Tax Return Filing: There are five big benefits of filing ITR on time. Also, the refund also comes quickly in the account. Due to which you get some great work done. If you file your income tax return on time, you will be able to carry forward your losses in subsequent years.
The Income Tax Department has urged taxpayers not to wait till the last minute to file their Income Tax Return (ITR) . The last date for filing ITR for the assessment year 2022-23 is July 31, 2022. The department has reminded the taxpayers not to delay and file their ITR today as the due date is approaching soon. Also, the department asked the taxpayers to e-verify after filing.
The ITR form enables a taxpayer to report his income and taxes paid to the department in a financial year. It is mandatory to file ITR if your income exceeds the basic exemption limit.
The IT department on Saturday said, “The due date for filing ITR is approaching! Don’t forget to file ITR for AY 2022-23 before 31st July 2022 . Spend today and avoid the stress of filing last minute.
The due date to file ITR is approaching!
Don’t forget to file ITR for AY 2022-23 before 31st July 2022.
File today and avoid the stress of filing last minute!
Pl visit: https://t.co/GYvO3n9wMf#ITD #FileNow pic.twitter.com/B4vm4j04jo— Income Tax India (@IncomeTaxIndia) July 16, 2022
By filing ITR on time, you will get these five big benefits-
Technical issues The income tax e-filing portal was launched in June last year, but there have been several occasions where the system has faced technical issues and glitches, which has made it difficult for taxpayers to file income tax returns, or file any other tax obligations on time. interrupted by.
Earlier this month, on July 2, the Income Tax Department said that they have noticed that taxpayers are facing problems in accessing the ITD e-filing portal. Infosys, the seller of the e-filing portal, said that there were some irregularities on the portal, for which proactive steps are being taken.
So, it is always better to be prepared and file your ITR on time or perhaps even before the deadline to avoid any lapses that may delay your filing process. There may be heavy traffic on the system for last-minute ITR filers.
Possibility of errors
The last minute rush to file ITR can open up the possibility of mistakes, leading to rejection of your return by the department. Untimely ITR filing has been seen as one of those mistakes which can result in error.
Some of the most common errors are – filling up of wrong ITR form, quoting wrong assessment year, and wrong personal information like name, date of birth, PAN and bank details. In addition, there may be factual errors, calculation errors, misrepresentation of income, and missing additional details of investments and other income.
It is always better to have enough time in advance when you file your ITR. It helps you to keep calm and file and check your documents thoroughly.
According to the IT department, a request for rectification can be submitted on the e-filing portal, if a notice issued by the CPC under section 143(1) or section 154 shows any discrepancy on record or by the Assessing Officer ( Where the correction rights are transferred by the CPC). Correction request can be submitted only for those returns which have already been processed by CPC.
Further, the department directs that correction of tax liability, gross total income, total deduction and personal information can be done by the taxpayers on the e-filing portal.
Penalty
If you fail to file your ITR on time, you will be liable to pay a certain amount as penalty to the department.
Section 234F of the Income-tax Act states, “Without prejudice to the provisions of this Act, where a person is required to furnish a return of income under section 139, he shall do so within the time prescribed in sub-section (1).” fails to do. said section, he shall pay the fee as…”
For filing returns on or before December 31 of the assessment year, a penalty of Rs 5,000 is levied. Whereas in any other case the fine will be Rs 10,000.
It is worth noting that if the total income of the person does not exceed 5 lakhs – then the fee payable under this section will not exceed Rs 1,000.
Profit carrying loss
If you file your income tax return on time, you will be able to carry forward your losses in subsequent years. There are two types of loss adjustments.
As per the IT Act, if the taxpayer has suffered loss from any source under a particular income in any year, he is allowed to set off such loss against income from any other source falling under the same head. The process of adjustment of loss from one source under a particular head of income against income from other sources under the same head of income is called inter-head adjustment, e.g. profit from business B against profit from business A. loss adjustment.
Further, it is clarified that if in any year, the taxpayer has suffered a loss under one head of income and income under another head of income, then he shall pass on the loss from one head to the income from the other head. can be adjusted against, for example, under the head of house property to be adjusted against loss salary income. This is called inter-head adjustment.
However, specifically, the loss can be carried forward only if the return of income/loss for the year in which the loss has occurred is furnished on or before the due date of furnishing of ITR prescribed under section 139(1) .
Help in TDS claims
Tax Deduction at Source (TDS) is a very common deduction from an individual’s salary or income from other sources. However, TDS claim can be reversed by filing ITR. During e-filing, a taxpayer should sum up his income from various sources which would result in tax liability, and then deduct them from the amount of TDS applicable to your income. If the TDS of a taxpayer is more than his total tax liability in a financial year – it means refund is due from the government. For TDS, a taxpayer has to submit Form 16 which can be availed from his employer.
By filing ITR on time, you can get your TDS refund in your bank account within few months.
