In India, taxes are the government’s principal source of revenue, and an important portion of that revenue comes from income tax. Individuals’ income is subject to income tax. For those who fall under its purview, an Income Tax Return (ITR) must be completed. The Income Tax Department sets the deadline for taxpayers to submit their ITRs for this reason. The majority of individuals believe that ITR Filing is only required by law. But they are unaware of its numerous advantages.
In order to avoid fines and interest
To avoid fines and interest, income tax returns must be filed on time. A fine of up to Rs 5000 can be imposed if this task is not finished in the allotted time. The fine can increase to Rs 10,000 if you keep delaying the submission. In addition, you will be required to pay interest on any unpaid tax balances if you have any and do not pay them by the deadline.
Can request a refund
One advantage of submitting income tax returns on time if you are subject to income tax is the ability to get a refund. You are eligible for an exemption under 80C if you have invested in PPF and Kisan Vikas Patra, among other programs. However, you can only use the refund if your ITR is submitted on time. You could not get the refund if you submit your ITR after the cutoff date.
Makes financial profile stronger
Your good financial history is the main benefit of filing your income tax return on time. Additionally, the credit score is also very good. You will need a credit score if you ever want to apply for a loan from a bank. Credit scores are also required for obtaining credit cards and other types of financing.
Moreover, avoids audit
By submitting your tax return on time, you can also avoid the Income Tax Department audit. If you submit your return after the cutoff date, the Income Tax Department will be able to review the data you submitted. Therefore, you can easily skip the review process by ITR Filing on time. Along with being your legal obligation, filing your income tax return on time has many advantages. By submitting your income tax return on time, you can avoid paying a late fee. Additionally, you might request a refund and improve your financial standing. To avoid penalties, income tax returns must be submitted on time.
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