Matter of work: File income tax return by December 31, otherwise you may have to pay a fine of 10 thousand

Income Tax Return (ITR) has to be filed by 31st December for the financial year 2020-21. According to tax experts, timely filing of ITR not only saves you from penalties but also has many other benefits. CA Abhay Sharma is telling you the benefits of filing ITR on time.

avoidance of fines
If you do not file ITR within the stipulated date, you may have to pay a heavy fine of up to Rs 10,000. This penalty can be avoided by filing ITR on time.

There will be no fear of getting notice
You may get a notice from the Income Tax Department for not filing ITR on time. It is beneficial to submit ITR on time to avoid notice hassles.

interest saving
According to the rules of income tax, if a taxpayer has not paid advance tax or has paid less than 90% of his liability, then he will have to pay interest penalty of 1% per month under section 234B. If you file your return on time, you can save interest on income tax payable.

loss carry forward
As per Income Tax rules, if you file ITR before the due date, you can carry forward your loss to the subsequent financial years. That is, in the next financial years, you can reduce the tax liability on your earnings.

There are many disadvantages of filing ITR late
Due to the delay in filing ITR, the taxpayer has to pay the penalty as well as you do not get many types of income tax exemptions. This does not give exemption under Section-10A and Section-10B of the Income Tax Act. At the same time, you will not get the exemption under Section-80IA, 80IAB, 80IC, 80ID and 80IE.

Apart from this, due to late filing of income tax return, the taxpayer will also not get the benefit of deduction under section 80IAC, 80IBA, 80JJA, 80JJAA, 80LA, 80P, 80PA, 80QQB and 80RRB of the Income Tax Act.