Request a demo

Thank you for your response

Our representative will get in touch with you shortly.

Please Fill the Details to download

Thank you for your response

Benefits of Filing Income Tax Return on time – AY 2019-20

Updated on:  

08 min read

Are you wondering whether you should file your tax return or not? 

Or you read it somewhere that if your income is below the basic exemption limit, then you might as well skip filing your income tax return? Before you make up your mind to not file your ITR, read on to know the benefits of filing the income tax return even when you are not mandatorily required to file. You will thank yourself later for it. 

Latest Updates

Latest Update:
CBDT has issued a circular on 9th Sep 21 extending the timelines for certain direct tax compliances for AY 2021-22.
1. ITR Filing due date extension:
i) ITR filing by taxpayers not covered under audit is extended from 30th Sep 21 to 31st Dec 21
ii)  ITR filing for Tax audit cases is extended to 15th Feb 22 
iii) ITR filing for transfer Pricing is extended to 28th feb 22
iv) ITR filing of Belated or Revised Return for FY 20-21 is extended from 31st Dec 21 to 31st March 22

2. Furnishing Audit Report:
i) Due date to furnish the audit report is extended to 15th Jan 22
ii) Due date to furnish the audit report for transfer pricing cases is extended to 31st Jan 22

Benefits of ITR Filing

Easy Loan Approval

Filing the ITR will help individuals, when they have to apply for a vehicle loan (2-wheeler or 4-wheeler), House Loan etc. All major banks can ask for a copy of tax returns as a proof of income statement. This is a mandatory document for the loan approval. 

Claim Tax Refund

There can be instances when tax has been deducted (TDS) from your income even when your total taxable income is less than the basic exemption limit and you have nil tax liability for that year. In such a case, you will have to claim TDS refun for which you will have to file an Income Tax Return mandatorily.

Income & Address Proof

Income Tax Return can be used as proof of your Income and Address.

Quick Visa Processing

Most embassies & consulatants require you to furnish copies of your tax returns for the past couple of years at the time of the visa application. These are amongst mandatorily required documents and hence it is always advisable to timely file your ITR. 

Carry Forward Your Losses

If you file the return within the orifinal due date, you will be able to carry forward losses to subsequent years, which can be used to set off against the income of subsequent years. This means you can deduct certain losses from the relavent income which will help you reduce your tax liability of the future income. This is not possible without filing of the income tax return. 

Avoid Penalty

If you are required to file your tax returns according to the income tax act, but didn’t, then the tax officer deserves the right to impose a penalty of up to Rs.5,000.

Refer & Earn up to Rs. 3000

Related Articles

How to file ITR ( Income Tax Returns ) on ClearTax? – Income Tax E-filing Guide For FY 2020-21

Income Tax Department Portal – Login & Registration Guide

incometaxindiaefiling.gov.in – Income Tax e-Filing Guide

Income Tax E-Filing with ClearTax

Income Tax Slab & Rate for FY 2018-19 to FY 2020-21

What is Form 16?

Check your Income Tax Refund Status Online

inline CTA
File your income tax for FREE in 7 minutes
Free, simple and accurate. Designed by tax experts