It is often seen that the taxpayer has to face a lot of problems on the last date of filing an income tax return. Traffic on the Income Tax website increases. In such a situation why it is better that we file our return before the last date, it will also have many benefits. Learn about 7 such benefits
The biggest advantage of filing income tax returns on time or before the last date is the avoidance of Last Hour Rush. With this, you do not have the fear of getting any kind of penalty which also saves you from stress. If this rule becomes your habit then you have more benefits.
To file an income tax return, a person has to collect many types of documents. This includes bank statements, loan statements, savings certificates, TDS certificates, various forms from employers, etc.
Prabhakar Gupta, Tax Advisor and Chartered Accountant at Suresoft Technologies, says that one of the major advantages of filing tax returns ahead of time is that you can revise your returns. That is, if some mistake has been made in it, then it can be rectified or if any document is left less then it can be corrected. If you file tax before the last date, you get enough time for this.
The filing of IT returns after the last date is called ‘belated returns’. In such a situation, the income taxpayer has to pay fees and interest on filing ITR. Therefore, due to the early filing of the return, you save this interest and penalty.
Prabhakar Gupta says that suppose you have a loss or have a capital loss in your business. In such a situation, if you have not filed your ITR before the last date, then you can neither carry forward nor set off this loss in the ITR of the coming years. In such a situation, an advantage of filing ITR ahead of time is also to carry forward the loss.
When you know that you will definitely get an income tax refund, then you should file ITR on time. This allows you to get your refund on time and faster, as the workload on the tax authorities increases after filing the return on the last date, so your refund may also come late.