financial services · Income Tax

Things you need to know before you file Income Tax Return

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What is Income Tax?

Income Tax is a direct tax, that is paid by the taxpayer to the Government of India. Anyone who has Income is supposed to pay income tax. It is mandatory for every earning individual to pay Income Tax.

What is Income Tax Return?

Income Tax Return or ITR is a documented proof that you have paid income tax to the Government of India. It consists of details related to your annual income and the amount of tax you have paid in a particular financial year. Every year, the Citizens of India who have taxable income are supposed to file Income Tax Return or ITR. ITR filing will help you in getting a refund, in case you pay more tax than your tax liability. If you fail to file your ITR, you might have to pay penalty or face legal consequences for the same.

What is the due date to file Income Tax Return for the financial 2017-18?

The last date to e-file Income Tax Return for the financial year 2017-18 is 31st July 2018. It is important to file your Income Tax Return by this date, otherwise you may have to pay a hefty amount.

What are the benefits of filing Income Tax Return?

We know it’s a tedious task to file Income Tax Return in India, but this process brings in a lot of benefits with it, here are a few of them: –

  • The last day to file Income Tax Return is July 31, but it is preferable to file your return before the due date in order to avoid extra traffic, in the end moment.
  • In case one has missed filing tax returns for the previous year, every additional day till July 31 increases the penal interest. That’s the reason we suggest you to file Income Tax Return beforehand.
  • Filing Income Tax Return on regular basis creates a good financial history for you. It helps you to get a visa and bank loan.
  • It is a proof of your Income and is also a Financial Record.

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