As the return filing season starts after end of financial year, we all wonder whether we should file now or later. As stated in earlier blog benefits of filing return of income before the due date. Since there is less of tax awareness in our country we all should file our return of income before the due date of the year.
Delay in filing of return of income can create lot of problems. If the income earned in the previous year is more than the basic exemption limit then return of income should be filed.
For the current financial year 2016-17, & assessment year 2017-18, the basic exemption limit is Rs 250000, for Senior citizen Rs 300000 & for very senior citizen Rs 500000. Thus, if the income exceeds such limits return of income should be filed.
Well chances of getting notices from income tax department is more since demonetization is more if person has not filed the return of income.
One loses interest on refund and also attracts penalty provision if there is non filing of return of income.
Well more delay of filing of return additional interest is payable on such late filing. As discussed earlier penalty of Rs 5,000 is to be paid for delay in filing return. Thus e-filing should be done in time.
If one has to apply for any loan or for visa return should be filed. If returns are filed then approval of loan becomes easier. For visa approval also return of income should be filed.
Tax planning is also an important aspect while filing previous year's return one realises taxes paid are higher or lower. Hence while filing the return one can plan for further for reducing the tax burden.
If someone has additional source of income apart from salary for eg, income from other sources or any capital gains or winnings from lotteries and if has not disclosed and tax has to be paid hence it becomes important to pay taxes before time and efile the return so that delay might not attract any interest as per income tax act.
Timely e-filing of return makes easy buying of any assets in India or specially abroad. As, it becomes mandatory for owning any asset in India and abroad e-filing becomes compulsory.For applying visa or travel abroad efiling is necessary. For studying abroad also filing of return of either person going or the guardian is must.
For any business organisation for carry forward of losses filing of return before due date is compulsory otherwise there can be no carry forward of loss. If any business is applying for loan for expansion filing of return is a must. For amalgamation or takeover of business and knowing value of business filing is must. Income tax return is valid proof for operations of the business. If there are any disputes then return gives a proof for resolving of the disputes between investors and business founders.
Thus, e-filing of return on time should be done for own good.
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