The due date for filing the income tax return (ITR) for the tax year 2021-2022 is December 31, 2021. In accordance with income tax rules, anyone with an annual income greater than Rs 2.5 lakh must file an RTI. Income up to Rs 5 lakh is tax exempt. Experts advise that even if you are not subject to tax, you must file an ITR on time to enjoy several benefits.
Due to technical issues in the new income tax portal, the government has extended the deadline for the RTI. Here are five benefits you can enjoy by filing your RTI on time:
1. Save interest
Failure to file the ITR on time may result in interest on tax payable. However, in accordance with the provisions of sections 234A and 234B, you can save the applicable interest on the tax payable by filing the ITR on time. There is no penalty relief for late filing of the ITRs.
Taxpayers are required to pay interest in the event of a delay in filing the RTI. Under the income tax rule, if a taxpayer has not paid withholding tax or paid less than 90% of his debt, he will have to pay interest under section 234B at the rate of 1 % per month or part of the month until the tax payment date.
2. Avoid penalties up to Rs 10,000
Filing a delayed RTI comes at a cost! Filing the RTI after the due date may result in a penalty of up to Rs 10,000 under income tax rules.
3. Avoid notices from the income tax department
The income tax department can send a notice if it does not file an ITR by the due date. And it can become an unwanted headache for you. Therefore, it is always better to file an RTI on time.
4. Loan approval becomes easy
It is easier for RTI filers to get their loan applications approved by lenders. When you apply for a loan, the bank will ask you to provide a copy of your RTI statement as proof of income tax return.
The ITR report is a mandatory document to obtain loan approval. Those who do not file an RTI may find it very difficult to get their loan application approved by an official lender.
So if you are planning on getting a loan in the near future, make sure you file your returns on time.
5. Carry-over of losses
Under income tax rules, you can carry forward losses to subsequent years if you file an ITR before the due date. This provision will help you reduce your tax payable on any future income.
Apart from the above, taxpayers who file their ITRs on time also get their income tax refunds faster than others.