The last date for filing Income Tax returns has been extended to 31st of August. Read on to know why it is important to file your income tax returns (ITR) on time.
Hello, there! Just so you know, the last date for filing your income tax returns (ITR) is fast approaching. In case you didn’t know, the last date to file your Income Tax returns has been extended to 31st of August. So, have you filed your ITR yet? Or are you still contemplating whether to do it or not?
We’d say that you better get it done before the 31st if you’d want to avoid getting a notice from the Income Tax department. But that’s not the sole reason we’re asking you to file your ITR.
Here are a few more important reasons why you should file your ITR before the deadline:
It’s your responsibility as an Indian citizen
As a good citizen of India, it is your responsibility to file your ITR within the due date, especially if you are earning a specified income annually. And it is mandatory too. Failing to file your ITR can result in late fees and penalties levied by the Income Tax Dept. And you wouldn’t want all that headache, would you?
It’s your tool to claim tax refunds
Usually, when TDS is deducted from your annual income, you’re usually eligible for refunds from the IT Department as the total tax deducted may be more than the amount you were required to pay. However, unless you file your ITR, you wouldn’t be able to claim any tax refund. Still thinking whether to file your tax returns or not?
Additional Reading: Make Sure You Complete Your ITR Process With These Steps
It helps you up your creditworthiness
While this is oft-overlooked, filing your IT returns without fail helps you improve your creditworthiness. It stands as proof that you are earning a steady income and you’re paying appropriate taxes every year too. When you apply for financial products, lenders usually check how you fare financially before approving your application. And most banks/NBFCs/insurance providers would ask you to submit your IT receipts before they proceed with your loan/Credit Card/ insurance (in case of high amount) application.
It is a requirement for visa processing
Planning to travel abroad? Foreign consulates, especially if you’re travelling to the US, Canada, Europe or Britain, would require your proof of income to process your visa if you aren’t visiting someone who qualifies as your sponsor. You’ll be required to submit your income tax receipts for a specified period.
Additional Reading: 12 Key Changes To ITR Filing 2019-20
It helps with your capital gains and losses
So, you’ve invested in equities? Well, if you want to claim adjustment against any of your past losses, it is important that you file your ITR every year. Revised returns cannot be filed unless you have filed the original one.
Additional Reading: Must Know: Important Documents Required For Filing ITR In 2019
Now that we know the advantages associated with filing ITR, let’s also quickly discuss the repercussions of not filing your ITR.
- Not filing your returns can lead to legal implications, especially if a revised return is filed in the future.
- A penalty of up to Rs. 10,000 can be levied if you do not file your ITR within the due date. If you missed the deadline but file it before December 31st, 2019, then you’ll be paying a late penalty of Rs. 5,000. If you delay it further, then you’ll be paying Rs. 10,000 as a penalty.
- The window to revise and re-submit ITRs in case of errors has been decreased to one year from the earlier two years. So, if you don’t file your taxes on time, the shorter the time you’ll have to revise any errors and re-submit your returns.
- Not filing your tax returns of time leads to a delay in the processing of your tax returns, thereby resulting in a delay in getting your tax refund.
We, therefore, advise that you file your income tax returns on or before August 31st, 2019, so that you can avoid any and all complications. Besides, timely filing of your returns shows you as a responsible Indian citizen while ensuring smooth governance at the same time.
Psst! While we are on the topic of taxes, did you know that investing in a tax-saver Fixed Deposit (FD) can help you save on your total tax output? Check out these offers!