The countdown to the last tax return filing date (RTI) is July 31, just four days away.
Taxpayers should submit their ITRs for the 2021-22 fiscal year online before the end of the deadline to avoid any fines or penalties and legal consequences.
Having a good RTI filing history gives you some advantages; read for details.
While the deadline for filing ITRs for individuals and employees whose accounts do not need to be verified is July 31, the deadline for taxpayers whose accounts need to be verified is October 31.
For the past two years, the government has extended the deadline because of COVID. But the center stressed the importance of filing their tax return before the deadline and this time refused any extension.
Why should you file your tax returns on time? Important reasons
Avoid penalties and fines:
According to income tax rules, failure to file your tax return on time may result in a fine of Rs 10,000 and other penalties. Any delay beyond July 31 may result in interest being charged on tax due, in accordance with Section 234A of the Income Tax Act 1961.
To avoid legal action:
The income tax department can send a notice if there is a delay or failure, which would prolong your legal problems. A court case may also follow if the IT department is still not satisfied with the review’s response and determines that it has a valid point.
Benefits of filing tax returns on time:
Easy Loan Approval:
Having a clean record of filing tax returns makes it easier to get loans approved by lenders. Banks require a copy of the ITR statement from borrowers applying for loans to verify their income.
Tax returns must be submitted for financial institutions to officially approve a loan. It can be difficult for those who do not file a tax return to get loans approved by institutional lenders.
If an ITR is filed before the deadline, tax regulations allow losses to be carried forward to the next fiscal year. This allows taxpayers to pay less tax on their future income.
The Income Tax Directorate notes:
“If in any year the taxpayer has suffered a loss from any source under a particular head of income, then he is permitted to adjust that loss against income from any other source under the same head. The process of adjusting for loss from one source under a particular income item against income from another source under the same income item is called intra-head adjustment.
“After making an intrahead adjustment (if applicable), the next step is to make an interheading adjustment. If during a year the taxpayer has suffered a loss under an income head and has income under another head of income, then he can adjust the loss by one head [As amended by Finance Act, 2022] against another chef’s income,” the IT department added.
Most foreign embassies require people to present their ITR history when applying for a visa. A visa application can be processed faster if you have a better tax return record, as it clearly shows your income and serves as a proof document.
How do I file a tax return?
The hassle of filing tax returns has been reduced. The long queues and endless stress of submitting taxes on time are gone.
Online filing, often known as e-filing, makes it easy to file returns quickly and from the comfort of your home or office.
Here’s how to file your ITR via the e-filing portal:
* Go to the e-filing website, https://www. incometax.gov.in/iec/foportal.
* Log in to your account if you are already registered or create a new registration by providing the required personal and communication information.
* Once connected to the portal, click on the “e-file” tab then on “File Income Tax Return”.
* Select the assessment year and click “Continue”.
* Submit your choice if you want to file your returns online or offline.
* Select “Individual” in the status applicable to your return and then choose the tax returns (ITR) you wish to file. Most salaried persons file their declarations with the ITR -1 form.
* You will then be asked to specify the reason for submitting the RTI from the available options. Validate your choice and go to the next step to fill in your bank details or validate them.
* Declaration tab – Once the taxpayer has completed all the details of the ITR-1 form, he is responsible for filling in the information required in the declarations by verifying that all the details provided in return are correct and complete.
* Check the information submitted to avoid any errors and click on “Proceed to validation”.
* Once the tax return has been filed, taxpayers will receive an SMS/email notification confirming the filing of the ITR.
How do I download the tax return?
It is crucial to file ITRs on time to avoid stress and last minute fines.
The IT department creates the income tax verification form after you submit your ITR so that taxpayers can confirm the integrity of your electronic return. These requests are if you are filing your returns without a digital signature.t
The tax return verification form can be downloaded in a few easy steps:
1. Log in to the Income Tax India website: click here or visit https://portal. incometaxindiaefiling.gov.in/e-Filing/UserLogin/LoginHome.html?lang=eng
2. View electronically filed tax returns by clicking on the “View Returns/Forms” option