Not filed IT returns yet? Here are 5 benefits of filing them before deadline

The last date date for filing Income Tax (IT) returns for Financial Year 2021-22 is July 31. This means tax payers must IT returns before this date unless the centre extends it. Often taxpayers wait till the last minute to file their income tax returns, which can lead to erroneous entries. To avoid this, it is suggested to file them on time or even ahead.Also Read | ITR filing: Furnish these details in return form to avoid getting notice from tax departmentCheck out other benefits of filing IT returns on time:1. Proof of incomeSalaried people receive payslips and also a Form 16, but those who are self-employed or are freelancers do not get either. Often, the ITR receipt remains the only document of their income proof, which helps them in several funding and other transactional matters.2. No penaltyFiling ITR is mandatory and not doing so before the deadline passes invites hefty fines and penalties. Therefore, it is always beneficial to file the IT return on time.3. Easier visa applicationsWhen travelling overseas, ITR proof is needed as they provide proof to foreign countries that you have funds to meet necessary travel expenses. IT return proofs for the past few years are a ‘must’ to get visas when going to the United States and Canada, as well as countries in Europe and others around the world.4. Carrying forward lossesFiling IT returns early helps an individual, or a company, carry forward losses they may have incurred in the current fiscal to the next, if needed. Such losses may be filed under ‘profits and gains of business and profession’ or ‘income from capital gains’.5. Faster loan processingLoans can be swiftly processed if one files IT returns diligently. When applying for a loan, one needs to submit ITR receipts for the last three years, which helps the bank assess the financial situation and ability of the individual to repay the amount.