For those of you, who due to some or the other reason fail to adhere to the specified timeline for filing income tax returns for a given financial year, the department allows belated or late filing of return and as prescribed the deadline to file ITR.
By when should the return be filed and what is the belated tax return?
Income tax return for a given financial year has to be filed by July 31st of the following year, (the date has been extended to 31 August 2019 for FY 2018-19) say for the FY 2017-18, the assessment year is 2018-19 and the ITR has to be filed by July 31st, 2018. So, when the filing of tax return is not done by the original due date then the provision of law allows a taxpayer to file a belated return by the end of the assessment year, that is March 31st.
So, for a given financial year, if you have not filed return due to any of the reason, you ought to do it as other than the tax-related benefits such as faster processing of your refunds, carry forward allowed in respect of some losses etc you will be able to reap its benefit in other aspects of your life.
1. Applying for loans: Nearly for all loan product categories, lenders asks you to furnish tax returns of last three FYs and in case the applicant fails to furnish these then his loan application is sure to get rejected.
2. Credit card issuance also requires complete ITR filing: In case you are applying for credit card then also you need to have ITR documentation complete in all respect as without it banks would not issue you a credit card.
3. Visa processing: When you are planning to move to an overseas country and apply for visa, most of the embassies require copies of ITR filed for the last 2-3 years for verifying that you have a steady income source. This is true in case you apply for visa for nations including the US, UK, Europe or Canada.
4. ITR can be used as a document supporting your steady income source: At some places such as when applying for big-ticket loans that span several years such as the housing loan, income tax returns filed by you for last several years can be used as a standard document supporting your income stream.
5. Registration of an immovable property such as real estate etc in your name: Not only should you be filing returns in time but they should also be free of any errors for getting the registration of an immovable asset in your name done at a speedier pace.
6. Buying an insurance policy: When the cover sough is huge against the policy, the insurer in order to ensure your capacity to service the premiums towards it may ask you of your ITR copies.