Importance of filing an ITR

The deadline for Income tax return filing is 31st July 2018. Filing your IT returns is very important. There are many benefits that can be availed by filing an ITR. Some of them also can help you in saving money and also in availing a credit in the future. Below mentioned are few important points that benefit you as an individual;

Filing an ITR is very important as it might be needed in future for taking a loan or a credit card. Yes, the lender can ask you for the previously filed returns as one of the criteria to be eligible for availing a loan.

You will be liable to pay 1% interest on the income tax due for every month that you file the return later than 31st July 2018. Hence it is advisable to get the filing done earlier to avoid the hassle on the last day with regards to site crashing and mismatches in taxes etc.

If you don’t file an ITR prior to 31st July 2018, you are liable to pay penalty charges under Section 234F:

ITR filed between 01/04/2018 – 31/07/2018: Late Fee – NIL
2)ITR filed between 01/08/2018 – 31/12/2018: Late fee – INR 5,000 INR
3) ITR filed between 01/01/2019 – 31/03/2019: Late Fee – INR 10,000 INR

For those who run a business, IT Laws allow you to carry forward business losses for up to 8 years* so you can set it off against any income/capital gains in the coming years. However if you fail to file the ITR prior to 31st July 2018, then you won’t be eligible to set off these losses.

Ruloans Advice:

As per the latest warning by the Income tax department, we request you to file the returns correctly and without under reporting of income or inflating deductions. If you are found as guilty, you can be charged under the offence which is punishable under the provisions mentioned in the Income tax act.

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