Filing Income Tax Return before July 31: Taxpayers are required to file ITR within the prescribed time limit to avoid any penalty. According to the website of the Income Tax Department, late filing of ITR attracts a penalty of up to Rs 5,000. Let us know what are the benefits of filing ITR before 31st July.
Penalty for not filing ITR till the deadline
If you have not filed ITR till the last date, then according to the rules, you may have to pay a fine of up to Rs 10,000. Apart from this, you may also have to pay interest on tax due to delay in ITR filing.
ITR comes in handy
If you file income tax return continuously, then any government or private bank gets ready to give you loan easily. ITR is an important document for any type of loan approval. Sections 70 and 71 of the Income Tax Act, 1961 also provide for carry forward of loss in any year to the next year. This means that you can carry forward your loss to the next assessment year.
government gives exemption
When you file ITR, the government gives you some exemptions. This helps the taxpayers to reduce their burden. This motivates more and more people to file ITR.
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