Do’s & Don’t on Filing Income Tax Returns

In every dealing of financial aspects there are Do’s & Don’t that need to be diligently followed especially, if you want to avoid losses. These Do’s & Don’t are of utmost priority because it is based on the laws and rulings of the court that take place when it comes to the financial aspects of a nation. More precisely they hold a great effect on whether you choose to follow, either you make a profit out of it or incur losses that can be a little more than you were anticipating.

Everything on this planet has its pros and cons, filing or not filing of your income tax returns is no different. The level of losses will only vary to case to case and the technicality differs from situation to situation. Interested to find out more then read on….

1. If filing of Income Tax return is not done before the due date:

There will be heavy penalties levied for not filing income tax returns, it will be at the rate 1% per month from the due date of filing the return till the actual date of filing.

2. Not filing the ROC:

If you do not file the ROC for 1 year then there will again  be heavy amount of penalties that will be levied on your company.

3. Losses will be carried forward:

If you have any unpaid tax liability then, filing your return after the due date will result in penal interest being levied at the rate of 1% interest per month from the due date of filing the return till the actual date of filing.

4. Loss in interest of funds:

If you claim a refund in your return of any advance tax paid / TDS then, you would lose some of the interest on such a refund.

5. More Losses to incur:

If the ROC filing is not done for 3 consecutive years then, companies will get stricken off and directors will be disqualified.

Apart from the above mentioned losses there will be a definite loss if you are unable to get financial aid and also it will have a direct effect on your investment.

There are definitely, more advantages to being on a safer side of doing what is right within the due date. And I understand that when it comes to finances and legal matters one cannot afford to be complacent at the same time it is not easy to multi task managing your company and giving in your 100% to making sure you are correct, flawless in filing your income tax return. To avoid any delay and incompetency, it is always better to outsource it to corporate solutions who are expert in these aspects. Be it GST registration, one company registration or private limited company registration, seek out to the experts After all, it is all about the MONEY.