Author
CA Ayush Sawhney
Chartered Accountant
B.Com, CA, DISA, FAFD, CCAB
Easy Loan Approval
Filing the ITR will help individuals, when they have to apply for a vehicle loan (2-wheeler or 4-wheeler), House Loan etc. All major banks can ask for a copy of tax returns as a proof of income statement. This is a mandatory document for the loan approval.
Claim Tax Refund
There can be instances when tax has been deducted (TDS) from your income even when your total taxable income is less than the basic exemption limit and you have nil tax liability for that year. In such a case, you will have to claim TDS refund for which you will have to file an Income Tax Return mandatorily.
Income & Address Proof
Income Tax Return can be used as proof of your Income and Address.
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. These are amongst mandatorily required documents and hence it is always advisable to timely file your ITR.
Carry Forward Your Losses
If you file the return within the original due date, you will be able to carry forward losses to subsequent years, which can be used to set off against the income of subsequent years. This means you can deduct certain losses from the relevant income which will help you reduce your tax liability of the future income. This is not possible without filing of the income tax return.
Avoid Late Fees
If you are required to file your tax returns according to the income tax act, but didn’t, then Late Fees u/s 234F of Rs. 10,000 will be imposed if Total Income exceeds Rs. 5 Lakhs and if Total Income is Lower than Rs. 5 Lakhs then Late Fees of Rs. 1,000 will be Imposed.
Due Dates :
CBDT has issued a circular on 9th Sep 21 extending the timelines for certain direct tax compliances for AY 2021-22.
1. ITR filing due date extension:
i) ITR filing by taxpayers not covered under audit is extended from 30th Sep 21 to 31st Dec 21
ii) ITR filing for tax audit cases is extended to 15th Feb 22
iii) ITR filing for transfer pricing is extended to 28th Feb 22
iv) ITR filing of belated or revised return for FY 20-21 is extended from 31st Dec 21 to 31st March 22
2. Furnishing audit report:
i) Due date to furnish the audit report is extended to 15th Jan 22
ii) Due date to furnish the audit report for transfer pricing cases is extended to 31st Jan 22
A taxpayer is required to have a tax audit carried out if the sales, turnover or gross receipts of business exceed Rs 1 crore in the financial year. However, a taxpayer may be required to get their accounts audited in certain other circumstances.
|