Don't let a missed ITR deadline cost you! This guide unveils how timely filing can save you significant money, like ₹2.28 lakh! Understand set-off rules,
and avoid financial pitfalls.
Suresh's Tax Woes
Suresh, an F&O trader, learned a harsh lesson when he paid ₹2.28 lakh extra in taxes due to a missed ITR deadline. This happened because he didn't file on time. His losses couldn't be offset. Learn from Suresh's mistake and save your hard-earned money.
ITR Filing Benefits
Filing ITR before the due date provides advantages. Taxpayers can set off and carry forward losses from business and capital gains. This lowers tax liability. The deadline for non-audit cases is September 15, 2025. Late filing can lead to penalties.
Loss Set-Off Explained
Under the Income Tax Act, losses in 'Capital Gains' and 'Business/Profession' can be set off. This is possible if the ITR is filed before the due date. Suresh's case highlights how this works, using specific examples of income and losses to simplify the process.
Impact of Late Filing
If Suresh had filed on time, his taxable income would have been ₹5 lakh, with a tax liability of ₹20,800. However, the late filing meant his taxable income was ₹14 lakh, and the tax payable rose to ₹1.14 lakh. This emphasizes the importance of meeting deadlines.
Key Takeaways
Understand Section 80 and Section 139 to better manage finances. Remember that intra-head set-off is usually allowed even with late filing. Prioritize timely ITR filing to maximize your tax savings, avoid penalties, and keep more money in your pocket.
