ITR Filing Update: Why You Must NOT Delay Filing Your ITR? Check Latest Update Here

Filing your income tax return (ITR) on time is important for several reasons. Failing to file your ITR within the due date can lead to penalties and interest charges. The penalty for late filing can range from a flat fee to a percentage of the tax owed, depending on the duration of the delay. By filing ITR on time, you can avoid these unnecessary financial burdens.

Also, if you are eligible for a tax refund, filing your ITR promptly ensures that you receive your refund sooner. The processing of refunds typically starts after the ITR is filed, and delaying the filing will only delay the refund process.

If you are sitting and thinking that the ITR filing last date will be extended, you could be disappointed as the July 31 deadline is unlikely to be extended. Recently, revenue secretary Sanjay Malhotra has asked income tax payers to file their return at the earliest as the finance ministry is not contemplating extension of the July 31 deadline.

“We would like to thank income tax return filers as ITR filing has been at a much faster pace than last year and we would advise them not to wait until the last moment and also not to hope for any extensions. So, I would advise them to file their tax return at the earliest because the deadline of July 31 is approaching fast,” he said.

Also Read: Don’t Miss Out On Tax Breaks: Tips For Maximising Savings Before Filing ITR

About 5.83 crore income tax returns were filed as on July 31 last year, the last day for filing returns for assessment year 2022-23.

The current due date for filing ITR for the financial year 2022-23 is July 31, 2023. So, experts suggest to file ITR well before the due date to avoid any penalties or delays.

Here are some key reasons why you should not delay filing your ITR:

1. Fee for default in furnishing return of income shall be Rs 5,000 if return has been furnished after the due date prescribed under section 139(1). However, the fee is Rs 1,000 if the total income of an assessee does not exceed Rs. 5 lakh.
2. The Income Tax Department may issue notices or initiate scrutiny proceedings for delayed or non-filing of ITR. By filing your ITR on time, you can minimise the chances of being subjected to such inquiries, saving you from unnecessary stress and potential legal consequences.
3. Filing your ITR requires gathering and organising various financial documents, such as bank statements, Form 16, and investment proofs. By completing this process on time, you maintain a systematic approach to your financial records, making it easier to track and manage your financial affairs.
4. Timely filing of ITR is often a prerequisite for various financial transactions, such as loan applications, visa processing, and business partnerships. Lenders and other stakeholders often require income tax returns as proof of income and financial stability. Delayed filing can hinder these processes and cause unnecessary delays in your financial plans.
5. Filing your ITR on time demonstrates your commitment to tax compliance and good financial practices. It helps you stay on the right side of the law and contributes to a transparent and efficient tax system.

Also Read: Income Tax Refund Made Easy: Step-By-Step Guide To Check Your Tax Refund Status Online

Here are some tips for filing your ITR on time:

• Start early: Don’t wait until the last minute to file your ITR. This will give you enough time to gather all the necessary information and documents.
• Use the e-filing portal: The e-filing portal is the easiest and most convenient way to file your ITR. You can access the portal from anywhere and at any time.
• Get help from a tax expert: If you are not sure how to file your ITR, you can get help from a tax expert. They can help you to ensure that your return is filed correctly and on time.