The GST is rolled out by the government to have all the benefits of tax reforms and uncover the people with unaccounted money. The GST is a system where one can find if the tax for the concerned products and services is paid or not. Compared to the past system of multiple taxes, here one can find simple tax system with the help of which to determine the tax liability and making of payment are easy. It almost the time to file your income tax returns and people are in the hassle of filing the returns on time. Missing the deadline not only imposes a penalty or fee on the taxpayer but they also lose out on few benefits that are available to payers who file the return on time. Hence it is necessary to file the tax return under GST.
Paying clear tax return on time is beneficial to the taxpayer in several ways. Here’s a look at some of the benefits:
- Carry forward the losses
The taxpayer has the liberty to carry forward the losses and allowed to adjust them with future capital gains up to 8 years. But the liberty is allowed only if the taxpayer files return on time. In case the taxpayer files a return late, they won’t be allowed to carry forward the losses.
- Refund
If the taxpayer has a tax demand outstanding, i.e., if the individual has paid excess tax, the individual can only claim the amount back by filing the return on time. If the refund is delayed due to any reason in sending the refund, the tax department will be liable for paying you interest on the amount of refund. Hence those who do not get the refund timely will also be benefited. In case the individual files the return late, they will get interest from the day of filing return. They won’t be paid any interest for the period of delay.
- Proof of income
It is important to file the tax return as it serves as a proof of the income. When an individual applies for a loan from the bank or any financial institution, they might ask for a copy of the latest income tax return as it serves as a proof of the income. This applies even when you apply for the visa. The authorities will ask for a copy of tax return as it will be essential to determine the financial position of the individual.
- Avoid penalties
As per the income tax laws, if an individual delays in filing the tax returns, they are supposed to pay interest at the rate of 1% per month on the tax amount due till the date they file the tax return. If the individual fails in filing the tax return, the tax department might levy a penalty of Rs. 5000. In case the department finds that individual is making willful delays, there are provisions for higher penalties and prosecution in extreme cases.
Explore web for more information on how to submit GST return online.