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Filing Income Tax Returns: 5 Reasons Why You Should File Your ITR On Time

There are seven ITR form available to different groups of taxpayers.

ITR type 1 (Sahaj) and ITR type 4 (Sugam) are simpler forms that cater to a large number of SMEs taxpayers. Sahaj can be filed by an individual earning up to 50 lakh and those who receive income from salary, a residential property / other sources (interest, etc.). On the same line, Sugam is filed by individuals, Hindu Undivided Families (HUFs) and corporations (other than a Limited Liability Partnership (LLP)) with gross income up to 50,000 and income from business and profession calculated according to the provisions of the law on flat tax.

Furthermore, individuals and HUFs with no business or occupation income (and not eligible to file Sahaj) can file ITR-2 while those with business or occupation income can file ITR Form 3. Non-individuals, HUFs and corporations i.e. partnerships companies, LLPs, etc can file Form ITR 5. Companies can file Form ITR 6. trusts, political parties, charities, etc. require income to be exempt under the ITR-7 Fileable Act.

The IT department on Saturday said, “The ITR submission deadline is approaching! Don’t forget to submit your ITR for AY 2022-23 by July 31, 2022. Get started today and avoid the stress of last-minute submissions. “

Here are five reasons why it’s a good idea to practice filing an ITR on time:

Technical issue:

Since the time the income tax return portal was launched last June, there have been a number of cases where the system encountered technical problems and glitches that prevented the submission of income tax returns by individuals. taxpayer or any other tax liability is interrupted. time.

Earlier this month, on July 2, the Income Tax Department said it had noticed taxpayers were experiencing problems accessing the ITD electronic filing portal. Infosys, the provider of the electronic filing portal, said that there was some unusual traffic on the portal for which proactive measures were taken.

Last month, there was another problem in the functionality of the e-filing website. Not forgetting, shortly after the portal was launched on June 7, last year, it encountered many problems in its operation. So there has been a history of technical issues on the electronic filing portal.

Therefore, it is better for you to prepare and submit your ITR on time or possibly ahead of time to avoid any possibility of glitches that could slow down your application process. There can be a large amount of ITR last minute traffic on the system.

An error may occur:

Rushing to submit an ITR at the last minute can open up the possibility of errors and confusion leading to the department refusing to return your results. Untimely ITR submission has been considered as one of the mistakes that can lead to errors.

Some of the most common mistakes are – incorrect ITR form submission, misquoting year of review and incorrect personal information such as name, date of birth, PAN and bank details. Furthermore, there may also be actual errors, calculation errors, incorrectly mentioned earnings and omissions of additional details of investments and other income among others.

You’re better off giving yourself plenty of time before submitting your ITR. This helps you stay calm and prepared in submitting your application and also double-checking your documents thoroughly.

According to the IT department, a repair request can be submitted on the e-Filing portal if there are any obvious errors in the record, in an Orientation issued u/s 143(1) or command u/s 154 by the CPC or by the Evaluator (when the CPC transfers the right to rectification). Correction requests can only be submitted for returns that have been processed by CPC.

Furthermore, the department directs that taxpayers can correct their tax liability, gross income, total withholding and taxpayer’s personal information on the electronic filing portal.

Penalty:

If you do not file the ITR on time, then you will have to pay a certain amount as a penalty to the department.

Section 234F of the Income Tax Act says, “without prejudice to the provisions of this Act, wherein a person who is required to provide income under section 139, fails to do so within the time specified in subsection (1) of said part, he will pay, by charging …”

Have A fine of 5,000 if a refund is provided on or before December 31 of the audit year. While the punishment will 10,000 in any other case.

It should be noted that if the person’s total income does not exceed 5 lakh – then the fee payable under this section shall not exceed 1,000.

You can transfer your losses:

If you file your income taxes on time, you’ll be able to carry your losses into subsequent years. There are two types of adjustments for losses.

Under the IT Act, if in any year a taxpayer incurs a loss from any source of a particular income end, he or she is allowed to adjust that loss against income from any source. other belonging to the same head. The process of adjusting losses from one source for a particular income holder against income from other sources for the same head of income is called internal adjustment, for example: Adjusting loss from business A vs. with business profits B.

In addition, it is explained that if, in a given year, a taxpayer suffers a loss under one head of income and has income under another, the taxpayer can adjust the loss from one end of the income to the other. with income from another head, Example: Adjusted home equity loss versus wage income. This is called inter-head adjustment.

However, it is worth noting that losses can only be carried forward if the gain/loss for the year in which the loss was incurred is repaid on or before the ITR provision due date specified in section 139(1).

Filing an ITR helps you claim your TDS:

Tax withheld at source (TDS) is a very common deduction from an individual’s salary or income from other sources. However, the TDS can be re-claimed by filing an ITR. During electronic filing, taxpayers should aggregate their income from the various sources that will result in tax liability, and then subtract them from the TDS amount that applies to your income. If a taxpayer’s TDS is higher than his or her total tax liability for a financial year – this means a refund is due from the government. For TDS, taxpayers will be required to file a Form 16 which can be provided from their employer.

By submitting your ITR on time, you can get your TDS refund back to your bank account in a few months.

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