ITR Filing offers multiple benefits to everyone.
In fact, you also get the benefits of filing income tax returns even if it is not mandatory for you to file returns.
By doing so, you may unlock potential advantages and safeguard your financial interests.
Moreover, filing before the deadline can provide you with peace of mind, avoiding any last-minute rush or penalties.
Apart from that, there are several benefits of ITR Filing before the deadline.
Let’s discuss them through this article.
Well-Preparation/ Lower Risk of Mistakes
In order to file your Income Tax Return (ITR), you may need to acquire multiple documents from various sources.
You will require interest certificates, loan repayment statements, and TDS certificates from your bank, for example.
You’ll also need Form 26AS and information on capital gains from equities or debt investments from your broker or mutual fund company, among other things.
Once you’ve gathered all of those details, you must send them to your tax adviser or Chartered Accountant (CA) so that they can compute your tax due appropriately.
Starting early can help you prevent last-minute worry because this procedure may take some time.
By starting early, your tax consultant/CA will have more time to work on your case, lowering the possibility of mistakes.
E-Verification Prompt And Expedited Refund Process
If you have previously paid Advance Tax or had Tax Deducted at Source (TDS), you may be eligible for a tax refund if your tax due is lower than estimated.
After submitting the income tax return (ITR), the refund is deposited to the taxpayer’s account.
The ITR verification and reimbursement process is done on a first-come, first-served basis.
As a result, taxpayers who do ITR Filing early will receive their refunds before others. This is a solid reason to file your income tax return early.
You immensely boost your chances of obtaining your refund quickly by doing so. Delaying the ITR file, on the other hand, may lengthen the refund procedure.
Loan Approval Process Simplified
Filing your ITR is quite beneficial when applying for various sorts of loans, such as car loans (2-wheelers or 4-wheelers) or home loans.
Leading banks usually want a copy of your tax returns as proof of income, making it a required document for loan approval.
Also Read: How to apply MSME loan for new Business
Rapid Visa Processing
When you apply for a visa, most embassies and consultancies will ask for copies of your tax returns from the previous several years.
These documents are required as part of the visa application process.
As a result, it is strongly advised to file your ITR as soon as possible to ensure expedited visa processing.
Failure to file income tax before the due date (31st July) leads to a penalty of Rs. 5000 if filed by 31st December, according to Section 234F.
If the ITR is not submitted by December 31st, the penalty increases to Rs. 10,000. Early tax filing might help you avoid these fines.
Notice Of Defective Return
When you rush to file your ITR soon before the deadline, you increase your chances of making errors.
If the Income Tax department discovers any problems or discrepancies in your file, they may issue a Defective Return Notice, requesting you to explain the anomalies.
The easiest way to avoid this is to file your taxes early and provide plenty of time to evaluate and correct any issues.
Moreover, If you want any other guidance relating to the Benefits of ITR Filing before the deadline, Please feel free to talk to our business advisors at 8881-069-069.
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