The Income Tax Department strongly advises against waiting until the last minute and stresses the importance of filing your income tax return (ITR) on time. It’s a legal requirement, not just a recommendation. Financial fines and legal repercussions may follow noncompliance. Here are some common pitfalls to avoid and the reasons you should prioritize timely filing.
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Five Motives For Timely ITR Submission
Avoid Penalties-Penalties under the Income Tax Act apply if you miss the deadline. A person who fails to file their ITR on time is required to pay a fee, according to Section 234F. If the penalty is not paid by December 31st of the assessment year, it is ₹10,000; otherwise, it is ₹5,000. However, the fee is limited to ₹1,000 if your total income is less than ₹5 lakh.
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Difficulties in Rectification-You can use the e-Filing portal to submit rectification requests in the event that errors are discovered after processing. However, only returns that have already been handled by the Central Processing Center (CPC) are eligible for this option. Tax liability, gross total income, total deduction, and personal information can all be corrected.
TDS Liabilities-You can recover Tax Deducted at Source (TDS) by filing an ITR. You can determine your tax liability by adding up all of your income and deducting it from the TDS that was paid. Should TDS surpass your tax obligation, a reimbursement may be granted to you. Make sure that, when e-filing, you attach Form 16, which you can obtain from your employer.
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Prevent Technical Issues-Since its launch, there have occasionally been technical problems with the income tax e-filing portal. The filing process may be hampered by these errors. By filing well in advance of the deadline, one can minimize the impact of any transient system issues by creating a buffer.
Higher Chance of Errors-Errors like quoting the wrong assessment year, using the wrong ITR forms, or giving false personal information are more likely to occur when filing quickly. The department may reject you for these mistakes.
