Filing ITR on time beneficial VS penalties | NPRV Advisors

To know about ITR Filing is important

Every account department of companies work on accounting and taxes.It is actually compulsory for all the companies or individual to furnish a return of income that exceeds the maximum amount not chargeable to income tax.

Income tax return is a legal document and should be filed with so much of care and cautiously. Actually there should not be over writing, no corrections and it should be signed properly and verified by an authorized person.

Why timely filing is good:

Aadhaar cards linking with the PAN has been made mandatory. So to avoid warning letters from the income tax department, you must keep in mind to file your ITR on time. Income tax department is tracking your financial sources. Many tax-payers receive SMS regarding the delayed filing of ITR or no filing in some cases. We should know the importance of filing an ITR even if we have paid all our taxes. There are benefits of filing an ITR even if your income isn't taxable. When you have filed the returns after the belated date the interest is calculated from the actual date of filing till the granting date. This leads to loss of interest. Even one day of delay can cause a loss of 4 months of interest, if we assume the last date to be 31st July. What if the ITR isn't filed even after the end of the Assessment year?

If you do not file ITR by 31st of July of the assessment year and your taxes are still due, 5000/- INR penalty is imposed by the tax authorities, if you fail to provide a reasonable cause for delay. Benefits of filing an ITR on time Refunds - As the returns are calculated from the 1st April, the beginning of a financial year till refund yielding In case of refunding your tax claims of any TDS, interest is not credited by the tax department. This is a major loss if you haven't filed an ITR.Tax Incentives - Losses for income : Income from business, sources which can't be carried forward. Thus the ITR filing on time would have helped in saving that loss. If belated return is filed, losses can't be carrying forwarded. Accounting and tax should be clear, As if talk about the law, no wealth records, fixed deposits, business etc. is given that importance as given to filing of Income Tax Return (ITR). It is actually helpful in all aspects.• Visas- Every individual is required to file a genuine return if they want to go abroad.• Loans from Banks- For any loan such as a housing loan, personal loan etc. the bank will ask to furnish the ITR of the last three years as a proof for the declaration of income.• Government Tenders- anyone who wants to expand business and more tenders from the government, ITR is a must.• LIC Agency- All insurance companies before allotting an agency check the financial condition of the agent. Three year's Income Tax Return (ITR) is asked before allotting any agency.As you know how important it is to file your Income Tax Return (ITR). File your Income Tax Return (ITR) on time and avail the above-described benefits. This can be done by E-Filing process or by a service provider company who is an expert in filing of ITR without any delays.

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