Earlier paying past tax returns was very tough. This was because it had to be manually and involved a lot of paperwork. It also consumed a considerable amount of time and money. Nowadays, filing past tax returns have become a very simple task. Individuals who want to file their income tax returns for the previous can file it two years prior to the financial year for which he or she has to file returns. Now, filing past tax returns online is encouraged by the ITR. This is the most convenient and simple way of filing the returns. You just have to make few clicks and it is done.
Things, which should be kept in mind, while the past returns by an individual or by a company:
Few important things should be kept in mind while you are filing past tax returns online. Filing taxes is an important task so it should be done carefully. The things, which should be kept in mind, are as follow:
- Companies or economic and financial organisations should not carry forward Capital losses to the next year.
- The ones who pay their taxes within the given duration will not be liable to pay any penalty.
- The ones who do not pay their past tax returns within the next two financial years will be liable to pay the penalty. The amount of penalty is Rs. 5000.
- The ones filing their past taxes are still eligible for excess tax refund.
- If the advance tax is not paid on time the interest will be charged at 1% per month.
Advantages of Filing Past Tax Return Online
Filing tax return online has numerous advantages. It is just same as filing tax returns online. You need tax calculator in your Smartphone, which will calculate your taxes. After that, you just need to make few clicks and your work is done.
The benefits of filing past tax refunds are as follow:
- Fast processing
Earlier, people used to stand in a huge line in order to get their past tax return filed. However, these days it is completely different. You do not have stand in any line you can file your return from anywhere and anytime. Generally, refunds are initiated faster by the IT department if you have E-filed the returns. Only the e-i.d. and password is generated, and the tax is returned to the taxpayer’s account through net banking or through RTG transfer.
- Better accuracy
Filing past tax return online provides you with accuracy as your accountants are human beings who can make mistakes. Since, e-filing is totally computerised there is less chance of calculation errors. Paper works are always found with errors due to various reasons like calculation error, spelling error, grammatical error and overwriting. Hence, online method is less prone to errors than manual errors. Human beings can make mistake, but computers cannot.
- Cheaper option
E-filing of tax return is a cheaper option as compared to doing it manually. Filing past tax returns online helps in cutting down the cost of the accountants who are needed for calculating the taxes. You just need to download few apps in your phone in order to calculate your tax.
Hence, filing past tax return online is an easy and simple task. You do not have to stand in a huge queue in order to get your tax filed. The advantages discussed above can really make a lot of difference to you while you are filing your return. You just need to be a little careful and sensible while doing this work.