Income Tax Return

How to file Income Tax Return?

How to file Income Tax Return

Income Tax Return is the form in which assessee files information about his Income and tax thereon to Income Tax Department. Various forms are ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7. When you file a belated return, you are not allowed to carry forward certain losses.

Benefits of Filing Income Tax Return

1. Easy Loan Approval

Filing the ITR will help individuals, when they have to apply fora vehicle loan (2-wheeler or 4- wheeler), House Loan etc. All major banks can ask for a copy of tax returns

2. Claim Tax Refund

If you have a refund due from the Income Tax Department, you will have to file an Income Tax Return to claim the refund.

3. Income & Address Proof

Income Tax Return can be used as a proof of your Income and Address

4. Quick Visa Processing

Most embassies & consulates require you to furnish copies of your tax returns for the past couple of years at the time of the visa application.

5. Carry Forward Your Losses

If you file return within due date, you will be able to carry forward losses to subsequent years, which can be used to set off against income of subsequent years.

6. Avoid Penalty

If you are required to file your Tax returns but didn’t, then the tax officer deserves the right to impose a penalty of up to Rs. 5,000.

Penalty for Late Filing of Income Tax Return – AY 2019-20

1. Penalty for Late Filing u/s 234F

As per the changed rules notified under section 234F of the Income Tax Act which came into effect from 1 April 2017, filing your ITR post the deadline, can make you liable to pay a maximum penalty of Rs 10,000.

To break this down; if you file post 31 August but before December of this year (i.e. 2019), a penalty of Rs 5000 will be levied. For returns filed after December 2019, penalty limit will be increased to Rs 10,000. However, as a relief to small taxpayers, the IT department has stated that if your total income is not more than Rs 5 lakh, the maximum penalty levied for
delay will only be Rs 1000.

2 Reduced Time for Revising Your Return

Earlier, taxpayers had a 2-year long window to revise and resubmit an erroneous ITR. This] has now been decreased to one year from the end of the financial year.

3. Payment of Interest

If you do not file income tax returns on or before the due date, you would be required to pay interest at the rate of 1% for every month, or part of a month, on the amount of tax remaining\ unpaid as per section 234A.

4. Carry Forward of Losses is Not Permitted

If you have incurred any losses during the year say a loss under the head Capital Gains or any loss in your business, make sure you file your return within the due date.

5. Delay in Receiving Refunds

In case you’re entitled to receiving a refund from the government for excess taxes you have paid, you must file your return before the due date to receive the refund at the earliest.

In case you’re entitled to receiving a refund from the government for excess taxes you have paid, you must file your return before the due date to receive the refund at the earliest.

What are the steps to file income file return?

 

Visit our Partner Websites – To view our sites click on given links below

GST panacea.com – A commercial Tax and Goods and Service Tax related website. Here you can find all GST related latest news, notifications, orders, Circulars and many more.

Subscribes our YouTube channel Abhishek raja ram

To view Latest Wealth-maxi Articles Click on given Link

Wealth-maxi Articles