No one should miss last date to file ITR – Income Tax Return for FY 2020-21. This is the thing once missed, cannot come back. Its just not a legal compliance but also has variety of benefits. Lets read 5 reasons why a person must file Income Tax return on or before 31st march 2022.
1. Income Proof
Income Tax Return is used as proof for
- Loan purpose,
- Future and options in share market,
- Application of VISA or credit cards,
2. Updated ITR
You cannot file Income tax return for FY 2020-21, as the updated income tax return concept does not apply to FY 2020-21 as of now.
3. Revised or Belated ITR
You cannot file the revised ITR for FY 2020-21 or AY 2021-22 after 31st march 2022. The income tax portal will not allow you to do so. Every return which is filed after the due date but before the end of Assessment year is known as belated return. This belated return is filed with the late fee.
Late Filing Fee
| E- Filing Date | Total income Below Rs 5,00,000 | Total income Above Rs 5,00,000 |
| 31st December 2021 | Rs 0 | Rs 0 |
| Between 31st December 2021 to 31st March 2022 | Rs 1,000 | Rs 5,000 |
However, there is no late fee on income upto Rs 2,50,000.
Read Also: Revised Income Tax Return under Section 139(5) – Time Limit, Procedure, Provisions
4. TDS Refund
If your employer deducts tax at source or you have a contractual agreement that invites TDS, you can claim refund for the same by filing your income tax return for the year within the deadline. In such cases, the income tax department calculates your net tax liability after adjusting the TDS paid. If you are not required to pay tax, you can claim a refund by filing your ITR. You can track your refund by checking your income tax return status.
Read Also: ITR: 10 mistakes to avoid while Filing Income Tax Return
5. TDS u/s 194N
If the assessee hasn’t filed the income tax return for the previous 3 financial years the TDS rate will be deducted at the rate of 2% on the amount between INR 20 lakh to 1 crore withdrawn while 5% applicable on the amount exceeding the INR 1 crore of the FY.
If the assessee has filed the income tax return for the given year, there is no TDS deduction applicable however there will be a 2% TDS deduction on the amount above 1 crore.
Read More at : Everything about Section 194N- TDS on Cash Withdrawal
if you come under mandatorily required to file your tax returns according to the income tax act, but didn’t, then the tax officer deserves the right to impose a penalty of up to Rs.5,000.
Read Also: Income Tax Return: Who should file ITR for FY 2020-21 compulsory?
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