July will be ending soon and the last date for filing the Income Tax return is July 31, 2022. To avoid paying any penalty, all the taxpayers need to file their ITR for the financial year 2021-22. We have come up with reasons why you should file the ITR before the given deadline.
Reasons To File Income Tax Return Before The Deadline
The deadline provided for filing the ITR for those salaried employees whose accounts are exempted from auditing is July 31, 2022. For those whose accounts require auditing, the last date is October 31, 2022. Filing ITR before the given deadline is always appreciated. Let’s talk about the benefits of doing so.
The ones who file ITR as per the given dates need not pay any penalty. Delay in ITR filing can also lead to interest on the tax payable under Section 234A of the Income Tax Act 1961 and a fine up to Rs.10,000 needs to be paid.
In case of delay in not filing the ITR, the Income Tax department might send a notice and a person can land in legal trouble. Avoid this if you don’t want to get involved in any such matter.
Get Easy Loan Approval
Income Tax Returns are a mandatory document for any formal loan approval. The copies of ITR are seen by the bank as proof of income. Individuals who don’t file ITR can face hurdles while getting any loan approval from the bank.
Carry Forward Losses
As per the IT rules, forwarding the losses to the next financial year in case of ITR filing before the due date is allowed. This allows taxpayers to reduce their tax liability of future incomes.
Get Visa Quickly
Yes! You heard it right. Most embassies ask for the Income Tax Return documents while proceeding with the application. It is great to have a clear track record for a better visa application process.