6 Reasons To File Tax On Time And Avoid Penalty

Technical Glitch

There could be a technical glitch in the last moment which could prevent you from processing your ITR or tax payments.

Section 139

It mandates filing ITR if the income exceeds the exempted limit; section 139 (4) stipulates filing a late ITR three months before the end of the assessment year.

Furnish ITR

If an assessee fails to furnish the ITR within the due date as prescribed under section 139(1), he will be required to pay a fee of Rs. 5,000 as per section 234F.

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Interest

The Income-tax Act, 1961, lays down the penalty for a delay in filing ITR under Section 234A, which is a simple interest of one per cent per month.

Tax Evasion

If the taxpayer is found to be willfully evading tax, they may face imprisonment, ranging from a minimum of three months to a maximum of seven years under Section 276CC of the Income-tax Act.

Tax Refund

ITR filing is crucial for tax refunds or carry-forward benefits, loans, and visa applications, even without tax liability.

Compiled By Himani Verma