Many people delay their tax payments and drag it to the deadline date thus increasing the chances of making mistakes.
You can get in huge trouble by doing so in several cases.
Your one minor mistake can result in higher tax pay than you were supposed to pay actually.
If you are making late payments there are more chances of miscalculations and you may result in losing many schemes offered by the income tax department.
Deductions are the major features that many people forget to make use of.
As it is complicated to interpret the various deductions associated, usually people fail to make use of them.
A good planner takes his time to analyze these benefits earlier.
Many people end up paying unnecessary payments like paying refund amount instead of paying their taxes.
It is therefore highly recommended to make the calculations well before the deadline.
People with wrong dealings get audited and result in higher losses in tense situations.
Random audits can be done if they sense something fishy from your side.
If you have taken right steps at right time then you need not worry for such audits.
A failure to pay income tax within time may result in "failure to file" penalty and it is better to pay sooner than later.
This will negotiate or decrease the penalty amount.
An un-intentional or intentional failure in filing returns or failing to declare income on your returns may result in administrative or criminal penalties.
The tax authority will publish your name under the convicted person list on their website under the income tax act.
If somebody fails to file returns within two years, he would not be allowed to do so at all.
I-T department can ask for the documents for the last year also in such case.
Anybody would like to avoid such scenarios in life so pay taxes on time.