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? 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:
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 until the end. So why wait until the last day to file your returns?
Review and revise your Income Tax Return
Okay, we all have been in that situation where we might make a mistake during filing ITR and find about it later. Filing return early makes sure that you get enough time to review or rectify all the details and the department gives you time to revise your Income Tax Return. Although this is possible only if you file your return within the time frame of the due date.
Avoid legal repercussions
We hate to tell you but, filing your Income Tax Return 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 of tax amount due including penalty for non-filing. Moreover, you are under the high risks of receiving income tax department notices.
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 government 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.
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 approving 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.
The last date of filing tax is 31st July and you should hurry up. Take advantage of this time to file your income tax return as soon as possible.