The Income Tax Department has extended the last date for filing of income tax returns (ITR) for the financial year 2019 – 2020 to December 31st, 2020. Taxpayers who need to have their accounts undergo audit will get an extension till January 31st, 2021. This is good news for those who have not yet managed to get around to filing their income tax returns for FY2019 – 20 due to the ongoing pandemic.
This is the second time the deadline has been shifted ahead this year. It is most definitely a welcome relief.
Now, you can easily file ITR online
Traditionally, most people file their ITR will the help of a chartered accountant. However, you can now also file your taxes on your own online. The process is easy, quick, and smooth. Simply head over to www.incometaxindiaefiling.gov.in to download the relevant tax form and get started filing your returns.
When filing taxes online make sure that you have all your documents at hand. You will require Form 16, interest certificates from banks, salary slips, Aadhaar card, and PAN card details. Filing your ITR online will help you maintain social distancing while also being legally compliant as a tax paying citizen.
But don’t wait till the last minute. Even though the deadline for filing your ITR has been extended, it would be prudent to get to work immediately. Delaying might cause you to miss the deadline. Apart from that, filing your taxes on time will ensure:
The sooner your file your ITR, the sooner you can expend to get your refund (if you are expecting one).
No room for errors
Doing things in a hurry at the eleventh hour can lead to huge mistakes. Filing your taxes a few days before the deadline will put unnecessary pressure on you. To begin with, the deadline of 31st December is the year-end. You might be swamped with work at office or busy making plans for a vacation. The chaos of everyday life may see you make a mistake or two in your ITR and this can prove to be a snag in the process.
Speedy financial transactions
We often need our tax returns for other decisions in life, such as buying a house. Filing your returns early on will help speed up the processes of many other financial transactions for you.
Carrying forward capital loss
Business owners are allowed to carry forward capital losses under certain circumstances. But if they miss the ITR deadline, this benefit of carrying ahead the losses does not hold.
So, go ahead and file your ITR if you have not already done so. Hope this article has helped you. Good luck.