Winning Bizness Desk
Mumbai. The last date for filing income tax return for the financial year 2022-23 (Assessment Year 2023-24) is July 31, 2023 fast approaching. If you have not filed ITR till now, then do it as soon as possible. According to Tax expert, filing ITR on time not only saves you from penalty, but also has many other benefits. Taxpayers get two options to file income tax return. The new slab option was given from April 1, 2023. In the new tax slab, tax rates were kept low on income above Rs 5 lakh, but deductions were taken away. On the other hand, if you choose the old tax slab, then you can take advantage of many types of tax deductions. Now, lets see what are the benefits of filing IT return in time.
First - Avoiding fines
You may have to pay a penalty for not filing ITR within the due date. If the annual income of an individual taxpayer is more than Rs 5 lakh, then he/she will have to pay a late fee of Rs 5000. If the taxpayer's annual income is less than Rs 5 lakh, then he/she will have to pay Rs 1,000 as late fee. This penalty can be avoided by filing ITR on time.
Second- Freedom from fear of notice
At present, information about your income reaches the Income Tax Department from various sources, if you do not file ITR on time, the Income Tax Department can give notice to you on the basis of received information. It is beneficial to file ITR on time to avoid the hassles of notices.
Third - Saving interest
As per income tax rules, if a taxpayer has not paid tax or has paid less than 90% of his tax liability, then he will have to pay interest of 1% per month as penalty under section 234B. Also, if the return is not filed in time, then the liability of 1% interest under section 234A will come on the amount of net tax payable, which is tax to be paid. In this way, you can save interest on income tax by filing returns on time.
Fourth - Loss Carry Forward
As per the Income Tax rules, you can carry forward your losses to subsequent financial years if you file ITR by the due date. That is, in the next financial years, you can reduce the tax liability on your earnings. For example, if there is a loss on sale of shares, then it can be carried forward for 8 years, however, if the return is not filed in time, then the loss cannot be carried forward and will not get the benefit.
