Individuals whose annual income is above the exemption limit of rupees 2.5 lakh are obligated to file their income tax returns on time. An income tax return is said to be a form where the taxpayers declare all their details of deductions, income, taxes, and exemptions and they are liable to pay their taxable income to the government. Filing an income tax return is highly important to claim for tax deductions under section 80C and 80D.
The ITR filing dates for the year 2020-21 has been extended to November 30, 2020. It will also cover ITR files for the financial year 2019-20. The income tax department has notified people about this extension via twitter. The ITR files date 2020-21 has been extended to November 30, 2020.
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Filing ITR on time not only makes you tax-compliant but also it offers a bundle of benefits such as –
- Filing ITR on time helps to avoid penalties
People who do not submit their income tax return on time, the income tax department has levied a penalty of rupees ten thousand under the section of 234F which has come into effect from 2017-18. Therefore, filing ITR files on date help them avoiding unnecessary penalties.
- Having an ITR receipt is important
One should carefully preserve the ITR receipt as it is a very important document of your income and it also proof of that you pay your income tax on time.
- Get a hassle-free experience of processing home loans with ITR receipt
Most of the banks ask for ITR receipts for the last three years when someone applies for home loans or car loans. The banks like financial institutions consider this as a valuable document for processing a loan.
So, be a responsible citizen and file your tax on time to avoid penalties and other problems.