File Your Income Tax Return by July 31 to Avoid ₹5,000 Penalty: 4 Benefits of Timely Filing
Benefits of Filing Your Income Tax Return (ITR) on Time for the Financial Year 2023-24 (Assessment Year 2024-25)
The deadline for filing your Income Tax Return (ITR) for the financial year 2023-24 (assessment year 2024-25) is July 31. If you haven’t filed your ITR yet, it’s crucial to do so soon. According to Chartered Accountant (CA) Anand Jain from Indore, timely ITR filing has four significant benefits:
- Avoid Penalty
- Filing your ITR on time helps you avoid penalties. If an individual taxpayer’s annual income exceeds INR 5 lakh, they will incur a late fee of INR 5,000 if the ITR is not filed by the due date. For those with an annual income below INR 5 lakh, the late fee is INR 1,000. By filing your ITR on time, you can avoid these penalties.
- No Fear of Notices
- The Income Tax Department receives information about your income from various sources. If you fail to file your ITR on time, the department may issue a notice based on this information. Filing your ITR promptly can help you avoid the hassle of dealing with such notices.
- Interest Savings
- According to tax rules, if a taxpayer has not paid their tax or has paid less than 90% of the total tax due, they must pay a penalty interest of 1% per month under Section 234B. By filing your ITR on time, you can save on these interest charges.
- Carry Forward Losses
- If you file your ITR by the due date, you can carry forward any losses to future financial years. This means you can offset your losses against future profits, reducing your tax liability in subsequent years.
Filing your ITR on time is not just about compliance; it also offers financial benefits and peace of mind. Ensure you complete your ITR filing by July 31 to take advantage of these benefits.
