What is ITR

The last date of filing ITR is 31st December 2021*

What is ITR?

The procedure through which a taxpayer must submit a report of his total income received during the fiscal year is known as ITR filing. Individuals can file their tax returns online using the Income Tax Department’s official portal. It was reported in seven distinct ways: ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6, and ITR 7.

Why should you file ITR?

In India, it is obligatory to file income tax returns if you meet any of the following criteria:

• Individuals who fall inside the tax brackets.
• If it is a company or firm, regardless of whether it makes a profit or a loss in a fiscal year.
• If a tax refund is due, it must be claimed.
• If a loss under one of the revenue categories must be carried forward.
• If you are a resident of India, you have an asset or a financial interest in any company that is based outside of India.
• One is a signing authority in a foreign account if they are a resident of India.
• If you receive income from a trust that was established for charities, political parties, research associations, news agencies, educational or medical institutions, trade unions, not-for-profit universities or educational institutions, hospitals, infrastructure debt funds, any authority, body, or trust.
• In the case of a loan or visa application.
• It is taxable in India if an NRI derives any or all of his/her income from sources in India, and income tax returns must be filed accordingly.

What if you miss the last date to file an ITR?

Individuals who miss the impending ITR filing deadline can still file by the deadline, which is March 31, 2022. Because the due date was extended this year, the deadline was likewise extended to March 31, 2021.

However, there is a catch for individuals who file their ITR beyond the due date. They will not be able to carry over any losses for the current year, and they will not be able to offset any revenue for the current year.

What happens if you fail to file ITR by the last date?

The income tax department may impose a minimum penalty equivalent to 50% of the tax saved by not filing ITR if a person fails to file by the extended due date (March 31, 2022).

It should be mentioned that current income tax regulations provide for a minimum penalty of three years and a maximum term of seven years if the amount of tax attempted to be evaded exceeds Rs 10,000.

Conclusion

There are many pros of filing ITR on time and with only 2 days left in ITR filing, you can have that load leave it on us. As here at Book My Consultant we guide our clients on how to get more and more tax benefits and how you could get one.

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