The Income Tax Return (ITR) is the document that every taxpayer has to file with the income tax department. This is done every year to declare the income earned during the previous year.
Income tax returns are filed monthly or quarterly, depending on whether you have paid your taxes earlier.
The ITR form, called Form 16, has been updated from time to time and now comes with many new features that help file your income tax returns efficiently and quickly.
You can file your income tax return for any financial year by using this form which can be downloaded on the official website of the Income Tax Department at http://www.incometaxindia.gov.in/.
Once you have downloaded it, just fill in all relevant details as per your requirements and send it through a registered post or courier service so that it reaches the designated address within 45 days of the due date mentioned in the notification issued by the Income Tax Department.
There are several benefits associated with filing an income tax return online, such as faster processing time compared with physically filing at local offices or offices located outside India because all data required for processing will be transferred electronically into computers located at NSDL-National Securities Depository Limited (NSDL) where they will then be further processed.
If you are a taxpayer in India, filing your income tax return (ITR) on time is essential.
Failure to file an ITR can lead to penalties and interest charges, which could be costly. It is also possible that your employer may suspend or terminate your employment due to the late filing of ITRs.
If you miss the deadline for filing your tax return in India, several consequences may occur-
A late fee of up to Rs 5,000 for people having an annual income of more than Rs 5 lakh can go up to Rs 10,000 if the ITR is filed post the deadline.
And if your income exceeds the taxable amount limit, you will not be charged any penalty even if you file your ITR after the deadline. But, of course, there are exceptions.
You may also want to know the Income Tax Returns Filing Due Date
As per Section 234A, taxpayers who do not file ITR within the due dates have to pay an interest of 1% per month or a part of a month on the unpaid tax amount.
ITR filing cannot take place if the tax amount remains unpaid. Calculation of interest will begin after the tax filing due date, which is generally July 31 of a particular assessment year. A longer delay in tax filing would lead to more interest accumulation, thus increasing the overall penalty for late filing of ITR.
Those unable to file TCS or TDS statements within the due date have to pay a penalty of Rs. 10,000 to Rs. 1,00,000 in addition to the late ITR filing penalty under Section 234E. The penalty under Section 234E is a fine of Rs. 200 per day till TCS or TDS is paid.
Taxpayers should make sure to file their ITRs within the due date to avoid adverse consequences and penalties for late filing of Income Tax Returns. In case of late filing, they should clear the necessary penalties and try to file the next ITR within the due date.
Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.