10 Benefits of filing Income Tax Return before 31 March 2018


(Last Updated On: June 21, 2019)


We all try to abide by the due dates of filing ITR and are always vigilant about the same. There are various benefits of filing Income Tax Return. But, due date by the end of current Financial year i.e. 31 March 2018 is of utmost importance. And, you should know the benefits you can leverage if you file before 31 March 2018.

Do you know 31 March 2018 is the last for filing your belated return for AY 2016-17 and 2017-18? And if you already filed Income tax return during AY 2016-17 the same cannot be revised after this date?? Yes it is true!!

What happens when we generally miss the due date of filing? We are consoled because, we have an option to file belated return. But, this time its a reason to worry..

We have enlisted the top 10 advantages you still have time to make most out of

 

  • Claim Refunds:

There is no bigger joy than getting your money back! Income tax refunds can be claimed from the income tax department when you have paid more taxes than you are required to.

But, these refunds can only be claimed when you e-file your income tax return. It was also, observed by the Income Tax Department that many people are not aware of their TDS deduction. So, they have started sending the SMS alerts to encourage the people to file their ITR’s and claim their refunds.

  • Avoid Penalty & Prosecution Notices:

If you are required by the law to file your return, then non-filing can lead to the bombardment of income tax notices from the tax department.

Moreover, if you have deposited any amount in your bank account during the demonetization period or have entered into the high-value transaction, then you must file your Income Tax Return, as the income tax department has launched ‘operation clean money’ and many people who have done such transactions are being questioned.The best way to avoid this situation is to file your income tax return before 31st March 2018 and “Come Clean” in front of the tax department.

 

  • Rectify Mistakes :

In Case, you have already filed your ITR for FY 2015-16 (AY 2016-17), and now you discover that you have a mistake in your return either misreported or under or over reported your income and expenditure, then this is the last chance for you to revise your return before the tax department comes to you. For instance, you have income from FD, but you did not report it on your income tax return.

 

  • Carry Forward Your Loss from Home Loan:

If you have been paying your home loan EMI, but have not filed your return till date, then it’s the best opportunity to file your ITR and report your home loan interest payment as “negative income from house property” and take benefit of it (to be set-off from future incomes).

 

  • Create Credibility for Loan:

If you planning to take a loan in coming years, then you better get your ITR’s in place. Income Tax Returns of last three years is one of the basic documents required for taking home loans & education loan for your children. This helps banks in judging your pay-back capacity.

Post 31st March 2018, you will be able to file returns for F.Y. 2017-18 onwards, so hurry up and file your ITR.

 

  • Obtaining Visa:

For traveling abroad foreign consulates of many countries ask you to furnish last 3 years’ income tax returns or current year’s income tax return. This is especially required in case of Schengen Visa, to support visa application with your income tax return of last three years, even if your income was nil. The absence of any return can reduce the chances of you getting visa. Especially difficulty may be faced by the visitor, investor and work permit category.

 

  • Getting Credit Cards:

Having your very own credit card, can be a lifesaver in many situations of paramount importance whether you want to buy an expensive valentine gift or pay EMI of your Car Loan or Electricity Bill and you still have some time before your salary credits in your account. But, for enjoying such privileges again ITR comes in play at the outset at the time of application of your credit card.

 

  • Funding Documentation:

If you believe your business has the capability to be turned into the next unicorn. Then only working relentlessly will not do! You need to make your business number speak for itself. Many investors study your business scalability, profitability and other cost parameters from your business income tax return at the time of due diligence.

 

  • Protection against Black Money:

Events like “Demonetisation” can happen anytime! Any income not reported to the income tax authority comes under the radar of black money. So, avoid the unnecessary trouble in your already complicated life.  File your income tax return every year diligently and avoid the risk of your hard earned money being termed as black money by the Income Tax officials.

 

  • Buying high cover insurance Policy:

All of us want our loved ones to be happy even after our death. So, we always want to take as high cover policy.But, these days many insurance companies are adamant about checking your income tax return before providing high life cover in order to verify your annual income.

 

Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.