By Abhishek Soni
Are you in a never ending battle with your Income Tax Return? Do you for some reason or another get really close to the due date when filing the return? We thought so! To get you out of the practice of filing your return close to the due date, we have compiled a list of the most irresistible benefits to file your Income Tax Returns early:
1. Faster refund process:
You read it right! The refund of tax is processed on a “first come first serve” basis. This means if you file your return early, your refund will be processed earlier than those who wait till the end. So why wait till the last day to file your returns?
2. Review and Revise your ITR:
Okay we all have been in that situation where we make a mistake in ITR and find about it later. Filing return early makes sure that you get enough time to review all the details. However, those who are unable to avoid silly mistakes, the department gives you time to revise and re-revise your ITR, although this is possible only if your file your return within the time-frame of due date.
3. Take benefit of your Losses:
None of us like it when we incur losses. However, what if you could deduct these looses from your income of next year? Oh yes, if you file your ITR on time and notify the government about your losses, you can carry forward them and avail set-off provisions given by the Income Tax Department.
4. Avoid legal repercussions:
We hate to tell you but, filing your ITR after the due date or not filing it at all has legal implications. In case you file your return after the due date, you will have to pay an interest u/s 234A for late filing @ 1% per month or part thereof, along with the tax due. Moreover, you are under the high risks of receiving dreadful income tax department notices.
5. Premium Filing at Premium Time:
Consider a situation where you are stuck in a lot of traffic. What will happen? Either you will get a clear pass or you will get late to your office. And we all know the possibility of getting a clear pass. Similarly, when thousands of people try to file their return at the same time, the website experiences high traffic and might crash, leaving you late for filing your return. So, why file your ITR during the rush hour when you can easily avoid it by filing it earlier than others?
6. Everything goes your way:
Don’t you want that carefree life where you know everything is going the right way? So what’s stopping you? Last-minute tax filing is only going to put a setback to your carefree living. Filing your ITR with ample time in hand will make sure your get that “everything’s going my way” feeling.
7. Well, the benefits don’t end here:
When you are applying for a loan or Visa, Income Tax Return forms a base statement. This might surprise you but, as a precondition to approve your loan or Visa, financial stability is an important factor. The Income Tax Return is the best document used to judge your financial credibility. Filing your return early will make sure that you never miss an opportunity to buy a house or travel to the country that you have always dreamed of.
There are still a few weeks left before 31st July. Take advantage of this time to file your tax return as soon as possible. You have 7 of the most irresistible benefits to just grab your forms and file your tax return now!
(The author is a CA and CEO & Co-Founder at Tax2win.in)