02/11/2020
ATTENTION..................
ITR Filing FY 2019- 20 has been extended from November 31st to December 30 and For Individual taxpayers who need to get their accounts audited, the last date of return filing has been shifted from October 31, 2020, to January 31, 2021. While the deadline is extended this year, experts advice not waiting till the last day to file their tax return.
This extension was given to provide relief to taxpayers in these stressful times of the COVID-19 pandemic and also provide the tax officials with the room to ensure compliance with statutory and regulatory requirements across all sectors. It is to the taxpayer's benefit that the filing is not left to the last day of the extended period as waiting till the last minute to file a tax return can lead to errors. But are you waiting for the last minute??? Here's why you shouldn't wait for the Dec 31 deadline:
1.Avoid last-minute errors
ITR filing requires diligent care and attention to ensure that the details are accurate. You need to have all the documents, tax statements, interest income certificates etc. handy to ensure that all the details mentioned are correct so that there is a chance of error. Doing it carefully would avoid rectifications and revisions later. If you file your ITRs way before the deadline, chances of ITR having errors are comparatively low to doing it in haste.
2.Late interest payment
Taxpayers whose tax liability is greater than Rs 1 lakh should try to file their tax return as earlier since they would be subject to increased interest payment on the month on month basis. Failing to file ITR time attracts interest at the rate of 1 per cent for every month or a part thereof.
3.Quicker refund processing
In case you have a tax refund due, the payment will be delayed as the tax department will start processing the refunds only after you file the belated return.
The tax department pays interest on refunds from the date of filing of return in case of late returns. So in case you delay filing the belated return, you will lose on the interest payment on your tax refund, if any.
4.Carry forward losses
There is a provision to carry forward losses from one FY to another. However, taxpayers can avail of this only if they file their ITRs before the due date.
Also, taxpayers must remember that filing ITR after the due date is also allowed up to a certain period. However, taxpayers are required to pay a penalty in this case. Not filing returns at all could make one punishable under the Income Tax Act as tax evasion is a criminal offense.
