ITR Filing 2023: Taxpayers will get these benefits if file ITR before deadline

The deadline for filing Income Tax Returns (ITRs) is gradually approaching. People can file their ITR FY 2022-23 online before July 31, the deadline without any fines.

The taxpayers will, however, get some benefits from the Income Tax Department for filing their ITR FY 2022-23 before the deadline.

Avoid huge penalties for late Filing:

• According to the Income Tax Rules, if you don’t file an ITR by July 31, 2023, you may have to pay Rs 5000 penalty if you file ITR before December 31, 2023. However, the fine will be doubled or become Rs 10,000 if file the same after January 1, 2024. Delay in ITR filing can also lead to interest on the tax payable, as part of Section 234A of the Income Tax Act 1961.

Also Read: More Than 4.2 Crore ITRs Filed For Assessment Year 2020-21

You can claim tax deductions:

• The Central government allows certain deductions to the taxpayers who continue to file ITR on time every year. Such deductions help to reduce the burden on the taxpayers. Such tax deductions also encourage many people to file their ITRs.

Helps you to get loans easily:

• Every bank and financial company provides loans easily to the taxpayers who have a clean track record of filing Income Tax Returns before the deadline. Normally, the banks ask the borrowers to provide a copy of the ITR statement as proof of their income.

Losses to be carried forward to next year:

• According to Sections 70 and 71 of the Income Tax Act 1961, if the loss of any speculative business cannot be fully adjusted in the year in which it is incurred, then the unadjusted loss can be carried forward for making adjustments in the next year.