What is Income Tax Return? What are a few benefits of filing income tax returns or ITR Filing ?
A tax return is a form or forms filed with a tax authority that reports income, expenses, and other pertinent tax information. Tax returns allow taxpayers to calculate their tax liability, schedule tax payments, or request refunds for the overpayment of taxes.
Earlier, the taxpayers used to file their Income Tax Return offline, but now they have the provision of filing it online.
E-filing of Income Tax Return helps a taxpayer in getting tax refunds early, if they are eligible for any. In case, a taxpayer fails to file Income Tax Return within the stipulated time, then he/ she will have to pay a heavy penalty or face certain legal consequences.
Few benefits of filing income tax returns or ITR Filing are-
ITR receipt is more detailed than Form 16, entailing your income and taxation along with revenue from other sources.
- Use as address proof
- Helps the bank loan documentation process easier
- Compensate losses in the next financial year
- Helps to avoid extra interest
- Avoid penalties or scrutiny from the tax department
- Credit Card Processing
- For a hassle-free visa application procedure
- To buy an insurance policy with a higher cover
What I understand is ITR will be separate for individuals and business unit. So, what are the time frames we need to submit these ITRs considering this pandemic situation?
The due date of all Income Tax Returns for Assessment Year 2020-21 will be extended to 30 November, 2020. Similarly, tax audit due date will be extended to 31 October 2020.