What To Do if You Miss the Income Tax Return Deadline?

by Vinaya HS on September 23, 2017

in Finance

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The latest date for filing the ITR or income tax returns is kept on August 5. The date was extended by the government due to the technical problems. However, even after this if you still miss the deadline, you don’t have to worry. You can still file your tax returns for the assessment year 2017-18. For the assessment year 2017-18 or the FY’ 16-17, assesse can file belated returns till 31st March 2018. Also, as the latest legal news confirms, there will be no penalty levied for filing belated income tax return after the due date for financial year 2016-17 till March 31, 2018.

Though after missing the deadline, you will lose on some benefits. The assesse will not be allowed to file a revised return. He will not be able to carry forward the losses when filing the tax returns after the deadline. Moreover, along with paying any unpaid tax, the assesse will also have to pay the interest on any tax that he has not paid.

A delay in filing ITR would also mean a delay in the refunds. For filing the late returns online, you have to follow the same process as you file the returns before the due date. Just that, in the case of late returns, you will have to opt for “Return filed under section 139(4)” in the menu. In case of filing returns before the due date, you are allowed to carry forward the losses for eight years to set-off against the incomes of the future years which can help you reduce tax liability for the coming years.

The business news India says that in this year’s Budget, the government has started the late fee penalty of Rs. 10000/- for the late filing of income tax returns. This will be into effect from April 1, 2018. This will hold true for the returns filed for FY2016-17. In case of the income bracket below Rs. 5 lakh, filing the returns after July 31 will be levied a penalty of Rs. 1000/-. For the income bracket of above Rs 5 lakh, the fine will be Rs. 5000/-. In both the cases the fine will be levied if the return is filed after the due date but before December 31 of the assessment year. It will have to be paid while filing tax returns along with any tax on any income and interest.

If the assesse delays the filing of ITR and also there is any tax due on March 31 of the financial year, then he will have to pay an additional interest under section 234A at the rate of 1% per month on that amount. Also, if you file a belated return, it is recommended that you pay the outstanding tax liability soon so that the interest payable is minimized.

Also, only filing your tax return will not do until you verify it. As per the current tax laws, you can verify your return within 120 days of filing it.

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