Don't miss the due date to file your Income Tax return
5 ReasonsWhy?
Unavailability of the option to switch between the old and new tax regimes
If taxpayer having income from business/profession files their return after the due date, they will have to follow the old tax regime, even if they intended to switch to the new one.
Late filing of Income Tax Returns can attract various penalties and fines.
The penalty for filing ITR after the due date is ₹5,000 if filed before 31st December, and ₹10,000 if filed after that. This penalty can increase up to ₹1 lakh in some cases.
If a taxpayer fails to file ITR on time, they may also have to pay interest on the tax amount due
The interest is charged at the rate of 1% per month or part thereof, starting from the due date until the tax is paid. This interest can accumulate quickly and add to the taxpayer's financial burden.
Filing ITR on time also provides the taxpayer with a opportunity to revise their returns if required.
If the original return is filed within the due date, the taxpayer can revise it any time before the end of the assessment year.
Filing ITR on time also allows taxpayers to carry forward their losses from the previous year
If the return is not filed on time, the taxpayer loses the right to carry forward their losses, which can result in a higher tax liability in the future.