The Union Government has introduced a lot of changes this year, including the implementation of the Goods and Services Tax (GST) and the annual budget. Now, it's time for the tax payers to file their Income Tax Return (ITR) before the deadline!

The income tax department has given the date of July 31, as the deadline to file ITR for the fiscal 2016-2017, and if an individual failed to pay the tax by the deadline, he/she must be accountable and be prepared to face the consequences. Filing your ITR is a legitimate proof of your income and it also helps for the individual to establish a good record with the Income-Tax department. Paying your tax and filling tax returns on time is mandatory for all individuals.

If an individual failed to understand this and tries to escape this norm by not filing their ITR and paying tax on time then they must ready to face the consequences. Paying your tax on time has its benefits too as the banks will provide you with any type of loan (Housing, education etc) you are looking for only if you have filled your tax returns on time.

The government has decided the maximum penalty of Rs.10,000 for non-submission of ITR on the decided date. However, the fee is applicable from April 1, 2018 and will not apply for the financial year 2016-17 for which the deadline is July 31, 2017.

A new section 234F has been inserted by the government in the Income Tax Act that an individual would have to pay a fee of Rs.10,000 if he failed to meet the deadline for the submission of his/her ITR. But there are some changes made in the penalty system as the fee to be levied is based on the time period of the given dates.

If you failed to meet the due date (but before the date of December 31) a fee of Rs.5,000 will be levied on you as a penalty. If you file your ITR after December 31, the penalty on that individual will be raised up to Rs 10,000. However, there is some relief for an individual who is earning not more than Rs.5 lakh then the maximum penalty on that individual will be Rs.1000. The penalty system will be applicable from April 1, 2018 and onwards, which means all income-tax returns to be filled for the financial year 2016-17 or assessment year 2017-18 will not purview under this section.

How filing of ITR will benefit you

Filing your income tax return is necessary for all the tax payers as filling returns are important for:

1. Immediate registration of immovable properties

2. VISA processing

3. Banks won't credit you with a loan if you have not filed your ITR

4. It will give more credibility at the time of applying for a job as it will help to justify your earlier job salary claim

5. You can also claim your tax refund in case the company has deducted more tax than it should.

Many people still have no clue on how to file their ITR. Here are ways which can help an individual to file their ITR on time.

Form 16: If you are a salaried person that means if you are in the service sector the hassles for you are less as you receive form 16 from your employer which is required when you are filling your taxes yourself or with the help from a professional. Form 16 is that certificate which your employer issues detailing your taxable income and the TDS already deducted. The form helps you to get an estimate of your correct tax liability to I-T department.

Form 26AS: If you don't have a Form 16 you can use Form 26AS which is an annual statement which shows your tax-related information as it highlights the tax received by the govt through Tax Deducted at Source (TDS) deducted on your income from all the sources. Your payslips reveals the salary you received and the 26AS forms shows the TDS deducted from your salary.

E-filing: Filing your ITR on the internet. A much better and faster way of filing your income tax return with the I-T department. There is a better accuracy than the usual paperwork. It is much more convenient as you can file your ITR 24/7 at your convenience. E-filing is user friendly and the instructions help an individual a lot who is not conversant with the internet.

Well now we know the benefits of submission of income tax returns and the consequences if an individual doesn't submit his ITR. The penalty system which will be levied on an individual if he failed to meet the deadline and the process of filing ITR through various sources. So in order to not incur any business as well as capital loss a taxpayer must pay his taxes on the given time.

The date of submission for Income Tax Returns is July 31, 2017.