The final date to file Income Tax Return is 31st July 2018 for the financial year 2017-18 and you must file your ITR as soon as you can. You must be thinking, why you are required to file your Income Tax Return time. Here we will tell you some reasons, behind it: –
- If you don’t file your ITR on time, then in that case you will have to pay a humongous amount of penalty. As per Section 234F of the Income Tax Act, 1961. If you fail to file your Income Tax Return by 31stJuly 2018, then you will have to pay a penalty of Rs. 5000. If you don’t file ITR between August to December and then file it after 31st December 2018, then in that case you will have to pay a penalty of Rs. 10,000. For those who have annual income of less than Rs. 2Lakh, they will have to pay a penalty of Rs. 1000.
- It is important to file Income Tax returnsbecause you may be required to provide the income tax returns details to avail certain services. For instance, some countries ask you to furnish three- to five-year income tax return details as part of the visa issuing process, which you have to submit to the visa authorities, if you wish to go abroad for any purpose. Another place where you may have to provide Income Tax Return details is in the process of your home loan from financial institutions.
So, those were the major reasons why you must file your Income Tax Return on time.