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Missed The Deadline To File Income Tax Returns? Here Is What You Should Do

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October 27, 2017 in Economics

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As responsible citizens, it is our obligation to file the income tax returns on time. In case of a delayed return filing due to unavoidable circumstances, it is still achievable. Belated returns allow the provision to file income tax returns even after the due date.
The last date to file income tax returns for FY 2016-2017 is 31st March 2018.

New Rules to File Income Tax Returns

Initially, the IT department allowed an individual to file income tax returns for two consecutive years. However, post the demonetization phase, the duration has been reduced to a single financial year. Tax assessment has been made compulsory by the finance department.

Linking of Aadhar and Pan Card Made Essential

Indian citizens have the option to file income tax return online through the web portal offered by the Government of India. The login credentials comprise the PAN card as the user name and a user defined password. Different rules have resulted in updating the website where the user has to provide the Aadhar Number in order to link it with the PAN card.
With taxes and penalties looming over the unpaid tax, here are a couple of steps to help you out post that deadline.

1. Revision of the Belated Returns Is Not Allowed

Tax filing is a daunting task in itself. In case you have managed to file income tax return before the deadline, the portal allows revision of the documents and submissions. However, any erroneous details cannot be rectified later when the ITR is filed under ‘After Due Date’ option. Therefore, it is essential to fill out the forms carefully. Users are advised to verify the financial year before submitting any documents.

2. Pay Up Interests

Missing deadlines has its consequences. One of them, in case you failed to file income tax return for the previous financial year, is the penalty levied. Any unpaid tax will attract a penalty interest of 1% per month till the payment of the entire tax amount.

3. Variable Fines

There is also a fine of 5000 INR that can be imposed on non-payment of taxes. The fines are not universal yet. Any individual who has failed to file income tax return for FY 2017-18 before 31st December will be charged 5000 INR. Post that date the fine levied will be 10,000 INR. However, the fine is capped at 1000 INR for those with an annual income of less than five lakhs INR.

4. Cannot Carry Forward Losses

In case of belated returns, the carrying forward of losses is not allowed. Untimely return filing does not give any chance to carry those losses forward. The only exception to this rule is applicable only to the housing property loss. Various losses might have incurred based on business, speculations, investments etc. However, even if the tax is paid on time and the ITR filing is delayed, these losses cannot be carried forward under any circumstances.

5. You Lose Out On The Interests Of Refunds

Usually, the last day to pay file income tax return is 31st March of every financial year. During the payment of the taxes and post returns processing can give you a general idea of the refunds you are entitled to. A timely ITR filing incurs interest for at least four months. Missing the deadline in March entitles you to lose out on that extra amount. Nevertheless, the interest is calculated from the date of filing. Therefore, it is recommended that tax payers file income tax return on time to avoid such losses.

6. Repetitive Warning from the IT Department

Missing the deadline to file income tax return can attract the attention of the Income Tax department. There might be instances where you are liable to get multiple warning statements in emails, letters or SMS which can result in an unpleasant scenario.

Tax filing has been made relatively simpler over the year. Users have an option to file their taxes online and get it verified too. Step by step processes and instructions make a declaration of income, property, expenses, investments portfolio management easy. Timely filing of the tax returns has its own set of advantages.
Additionally, it helps in avoiding the excess penalties which might result because of the delayed process. Thus, it is always suggested that individuals should fill their ITR forms on time to reap the maximum benefits.

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