ITR 2019-20: Here's why it is necessary to file income tax return before November 30 deadline

Due to difficulties being faced by taxpayers because of the COVID-19 pandemic, the Central Board of Direct Taxes (CBDT) has extended the due date for furnishing belated and revised income tax returns (ITRs) for assessment year (AY) 2019-20 from September 30 to November 30.

The Centre had on July 29 extended the deadline for filing original and revised ITRs till September 30. The two-month extension – the third such given for FY21 – comes as the government looks to mitigate taxpayers’ hardships amid the coronavirus pandemic.

Earlier in March, the date was extended to June 30 from March 31, and in June till July 31.

A notification to this effect was issued by the CBDT on September 30 and comes after the finance ministry announced relaxations for the same in July.

Here's why it is necessary for you to file income tax return before the November 30 deadline:

- It will create more accuracy: To ensure that the details are accurate, ITR filing requires diligent care and attention. You need to check documents, tax statements, interest income certificates, etc. to avoid errors. If you file your ITRs way before the deadline, chances of having errors are comparatively low.

- Interest payment: Taxpayers whose tax liability is greater than Rs 1 lakh should try to file early as they would be subject to increased interest payment on a month-on-month basis. Failing to file ITR on time attracts interest at the rate of 1 percent for every month or a part thereof.

- Losses will be carried forward: Carry forward losses from one FY to another is a provision of the Income Tax Act. However, taxpayers can avail of this only if they file their ITRs before the due date.

- Refund will be faster: Refunds can be processed as soon as possible if taxpayers who are expecting refunds should try to file their tax return before the November 30 deadline. Earlier filing of ITR can be verified before and it will result in quick tax refunds.

Under the Income Tax Act, not filing returns at all could make one punishable as tax evasion is a criminal offense. Filing a tax return after the due date is allowed up to a certain period, though penalty will be levied on the taxpayer. Taxpayers have to pay Rs 5,000 penalty, if the return is filed by December 31 and penalty will be of Rs 10,000 for those filing returns between January 1 and March 31.