Last day to file ITR: Today (Monday, July 31) is the final day to submit income tax returns (ITRs) for salaried individuals and non-audit cases for the fiscal year 2022–23. By 1 pm on July 30, more than 5.83 crore returns had been filed for the fiscal year 2022–23, surpassing the number of returns filed through July 31 of the previous year. In order to avoid the last-minute rush and late fees, the I-T Department has urged taxpayers to file their forms as soon as possible.
Not filing ITR before the due date can have several consequences. Therefore, it is recommended to file returns before the end of the due date.
E-filing portal not working?
So at the end movement every one started to file ITR, this rush is effecting e-filing portal, The Income Tax Department has told taxpayers that if e-filing portal is working fine. If they are facing any issue with the site, they should retry after clearing the browser cache. In case the issue remains, taxpayers can also mail to the Income Tax Department on [email protected] with details.
IT Department might impose 200% penalty
The IT department has taken an aggressive stand against tax payers who use false rent invoices to avoid paying taxes as the Income Tax Department’s deadline draws closer. People who attempt to save money illegally risk facing a penalty that is around 200% higher than their real tax due.
What will happen if you miss the Last day to file ITR?
Even while it’s best not to miss your ITR, you can still file a delayed ITR if you forget to do so before the deadline. However, there would be late filing fee. If a taxpayer submits the ITR beyond the deadline, a maximum fine of Rs 5,000 would be imposed. The maximum fine for submitting a belated ITR, however, is Rs 1,000 for anyone whose annual total income does not exceed Rs 5 lakh.
Benefits of Filing Income Tax Return (ITR) on Time
Before you decide not to file your ITR, it is important looking into the benefits of filing ITR, even though it is not required.
- Claim Tax Refund: There may be instances where tax has been deducted (TDS) from your income, even if your total taxable income is below the basic exemption limit, or you have no tax liability for that year. In such cases, you must file an Income Tax Return to claim a refund of the TDS.
- Easy Loan Approval: When applying for various kinds of loans, such as home loans or car loans (for 2- or 4-wheelers), it can be advantageous to file your ITR. A copy of your tax returns is frequently needed by large banks to prove your income statement. To approve a loan, you must provide all of this documentation.
- Quick Visa Processing: When applying for a visa, most embassies and consultants require copies of your tax returns from the past couple of years. These documents are among the mandatory requirements. Therefore, it is advisable to file your ITR in a timely manner.
- Carry Forward Your Losses: By filing your return within the original due date, you can carry forward losses to subsequent years. These losses can be offset against the income of future years, thereby reducing your tax liability. Without filing an income tax return, this benefit would not be possible.
- For Buying Term Insurance: To approve term insurance plans, insurance providers often require applicants to submit their Income Tax Return (ITR) records as proof of their annual income. The coverage amount is determined based on the individual’s earnings, and presenting the ITR helps insurance providers assess a person’s higher income level.
- Claim Refund of Excess Tax Payments: Even if your income is below the taxable threshold, taxes may still be deducted from sources such as your salary, fixed deposit (FD), or other income. For example, if your total income is less than Rs. 2.5 lakhs, but you received Rs. 1 lakh from an FD, the bank is required to deduct 10% tax on this amount. In such cases, individuals can claim a refund for the tax deducted by filing an Income Tax Return (ITR). In simple terms, filing a tax return allows individuals to recover any tax deducted at the source.
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