Don't wait till December 31 to file your ITR

Don't wait till December 31 to file your ITR

Paying taxes on time to the government is the duty of every taxpayer. It is better to be disciplined to avoid any penalties in case of a delay in filing income tax every year. The last date for filing belated or revised ITR for AY20 has already been extended several times this year in the wake of the covid-19-induced lockdown. 

On Saturday, the income tax return department has again postponed the ITR filing due dates for AY 2020-21 (FY 2019-20) from November 30 to December 31, 2020, for that tax individual’s taxpayer where tax audit is not applicable. 

For Individual taxpayers who need to get their accounts audited, the last date of return filing has been shifted from October 31, 2020, to January 31, 2021. But it need not be beneficial for every taxpayer to wait till the last date to file an income tax return. 

Taxpayers who are expecting refunds should file early for their refunds to be processed earlier. ITR filings that are done earlier get verified earlier, thus resulting in faster tax refunds. The income department usually takes around one month to process refunds.

"In case a taxpayer needs a refund of excess tax, TDS or TCS, an early filing of ITR enables early processing of there

Filing ITR after the due date is also allowed up to a certain period. However, taxpayers are required to pay a penalty in this case. Not filing returns at all could attract punishment under the Income Tax Act as tax evasion is a criminal offense.