Filing the income tax return (ITR) with in the due date (last date) get you the benefit of avoiding penalties, notices, interest under section 234A, 234B, 234C, get the chance to file the revised return, and many more to know penalty, late filing interest etc.
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There are many advantages of filing the Income Tax Return with in the due date. 31st Jul is the ITR duedate for the income / financial activity during previous financial year. Check latest due dates @ Tax Compliance Calendar.
The important advantages for ITR Filing before the due date (last date) are
For tax payers with a Total Income of more than Rs.5,00,000
For tax payers with Total Income of less than Rs. 5,00,000 – Rs. 1,000.
The ITR filing process might have been simplified but still mistakes can happen in the form of overlooked income, missed tax benefits, etc. In case you have filed your ITR in a timely manner, you do get opportunities to revise your returns even after the due-date has passed.
Common mistakes, such as missed income and extra tax paid, can cost you in the long term whether through fines imposed by the IT Department or through loss of tax refunds.
In case you incur losses during earlier assessment years, thru sources of income such as business, capital gains, or income from other sources, they can be carried forwarded to the next financial year, and provide tax relief in the subsequent year. Unfortunately, such losses cannot be carry forwarded in case the ITR is filed after the due date.
Filing your ITR after the due date or not filing it at all has legal implications like notices, queries, and physical attendance at the tax commissionerate.