Taxpayers should file their income tax returns (ITRs) on time not only to avoid last-minute issues or to avoid being penalised by the IT department for late submission of ITRs, but also to make sure that they do not miss out on benefits of timely submission of returns.
The last date to close ITRs for financial year 2021-22 and assessment year 2022-23 is July 31. This year, the central government is unlikely to extend the due date for tax payment.
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Here are the benefits of filing tax returns on time:
Easy approval of loan: Since banks require a copy of the ITR statement to verify income of loan seekers, having a record of submitting timely returns makes approval of loan simpler. On the other hand, those who do not close their returns on time, may find it difficult to get their loan approved.
Less tax on future income: The income tax regulations allow for carrying over of losses to the upcoming financial year. This means that tax payers will have to pay less tax on their future income.
Read More: ITR filing: Over 3 crore Income Tax Returns filed so far; deadline ends this week
Quicker visa: Most foreign embassies demand ITR history of visa applicants when they apply for visas. Now, in case you have a history of submitting returns on time, it will help in faster processing of your visa application as it clearly shows your income and acts as a proof document.
