ITR for AY 2022-23: Five benefits of filing income tax returns on time

The last date for filing income tax returns for the financial year 2021-22 and assessment year 2022-23 is July 31. And if you haven’t filed your IT returns yet, you can file them before the last date to get some benefits and avoid any fine.

One should know that there are different ITR due dates or deadlines for different types of taxpayers.

Individuals and salaried employees whose accounts are not required to be audited can file their IT returns by July 31. For taxpayers whose accounts need to be audited, the deadline is October 31.

Here are five benefits of filing ITR returns on time:

1. Avoid fine

If you don’t file your ITR by the due date, you may face a penalty of Rs 10,000 and other consequences per the Income Tax Rules.

Delay in ITR filing can also lead to interest on the tax payable under Section 234A of the Income Tax Act 1961. So, it’s better to file your ITR on time.

2. Legal action 

In case of delay or default, the income tax department may send a notice to you. A legal case may also follow if the I-T department remains unsatisfied with the response to the notice.

3. Easy loan approval

If you have a clean record in IT returns filing, it will make your loan approval from banks easier. Generally, banks require the borrowers to provide a copy of the ITR statement as proof of their income. 

4. Carry forward losses

The income tax rules allow forwarding the losses to the next financial year in case of ITR filing before the due date. This allows taxpayers to reduce their tax liability of future incomes.

5. Visa approval

Most embassies require individuals to submit their ITR history while applying for visas. So, it’s crucial to have a clean record of tax filing which makes the processing of visa applications smoother.

READ | ITR AY 2022-23: How to file Income Tax returns?