Why you should file your income tax return before 5th of August

Income tax department has extended the due date for filing of income tax return for individual and HUF. As we know on 31st July income tax server went down and it also went under maintenance for few hours. Further website was not working properly so after considering the problem of assessee department has come up with the 5 days extension period.

This financial year you should file your ITR before the due date i.e. 5th August, because there are many adverse effects for non filing. Here are few for non filing your ITR on time:

 Interest for late filling of ITR

When you file your ITR after the due date,you shall be liable to pay interest for late filing of ITR at the rate of 1% pm or part of month (simple interest) till the return are filed.

Losses cannot be carry forward

Income tax act allows you to carry forward losses from business and profession and Loss from capital assets for a particular period of time. If you cross the deadline of ITR then you will not be able carry forward losses to next assessment year.

Delay In refund

 There may be a reason when employer deduct higher amount TDS for not submitting investment proof for deduction. In that case you would be entitled to claim you TDS refund by claiming deduction in your ITR.  If you file ITR within a time period then you would get refund on time as income tax department is processing ITR in few days and you may get refund in your bank in 2 months.

 

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