ITR Filing 2023: If you don’t file an ITR by the due date, you may have to pay Rs 10,000 penalty and other consequences as per the Income Tax Rules.
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ITR Filing 2023: The Income Tax Returns (ITRs) should be filed by salaried employees whose accounts are not required to be audited by July 31 for the FY 2022-23. The employees need to submit their ITR FY 2022-23 online before the end of the deadline to avoid any penalties. The Income Tax Department on its website said that the penalty for filing a late ITR is Rs 5,000 but it doubles that amount for later filings.
Many employees think that filing an ITR is a legal process through which they give information about their taxable income to the Income Tax department. However, it is not just about information but more than that. Here, find out what are the benefits of filing ITR before deadline.
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Avoid Late Filing Penalty
If you don’t file an ITR by the due date, you may have to pay Rs 10,000 penalty and other consequences as per the Income Tax Rules. As part of Section 234A of the Income Tax Act 1961, delay in ITR filing can also lead to interest on the tax payable.
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You Can Get Loans Easily
The taxpayers will get loan easily if they have a clean track record of filing Income Tax Returns before deadline. For loan application, banks need the borrowers to provide a copy of the ITR statement as proof of their income. Income Tax Returns are a mandatory document for any loan approval in India. The taxpayers who don’t file ITR on time face trouble in getting loans.
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Losses To Be Carried Forward To Next Year
There are provision under Section 70 and 71 of the Income Tax Act 1961 to carry forward losses of a particular year to the subsequent year. It simply means you can move your loss to the next assessment year.
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Claim Tax Deductions
If you continue to file ITR on time every year, the Central government allows certain deductions to you which helps to reduce the burden on the taxpayers and also encourages more people to pay their taxes. Interestingly, you can avail these deductions and exemptions in some investments. Moreover, you can claim back TDS and rebates.
