"After making intra-head adjustment (if any) the next step is to make inter-head adjustment. The process of adjustment of loss from a source under a particular head of income against income from other source under the same head of income is called intra-head adjustment." "If in any year the taxpayer has incurred loss from any source under a particular head of income, then they are allowed to adjust such loss against income from any other source falling under the same head. This enables taxpayers to pay less tax on their future income. If an ITR is filed before the deadline, the income tax regulations permit carrying over losses to the following fiscal year. It may be difficult for those who don't file tax returns to have loans approved by institutional lenders. Tax returns must be submitted for financial institutions to approve a loan officially. Banks demand a copy of the ITR statement from borrowers who apply for loans to verify their income. Having a spotless record of filing income tax returns makes getting loans approved from lenders simpler. A court case may also follow if the I-T department is still dissatisfied with the notice's response and determines that it has a valid point. The Income Tax department may send a notice in case of a delay or failure, which would prolong your legal issues. Any delay beyond July 31 can attract interest on the tax due, per Section 234A of the Income Tax Act of 1961. Why Should You File Income Tax Returns On Time? Important ReasonsĪccording to the Income Tax Rules, failing to file your income tax return by the deadline may result in a Rs 10,000 fine and other penalties. But the centre has stressed the importance of filing your tax return before the deadline and has refused any extension this time. Over the last two years, the government extended the deadline because of COVID. While the last date for ITR filing of individuals and salaried employees whose accounts don't need to be audited is July 31, the deadline for taxpayers whose accounts must be audited is October 31.
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