ALSO READNeed to file I-T Returns? Know the steps, benefits of doing it online Dread filing tax returns? Forms you need to file to claim I-T refund The many benefits of filing your income tax returns on time Today is the last day for filing income-tax returns: Here is how to do it Confused about income tax return filing? Find answers to all your questions
- Penalties and interests: In the case of an unpaid tax amount, the assessee is charged a penal interest under Section 234A and 234B per month till the liability is paid off. After the deadline, a further interest of one per cent per month will have to be paid under Section 234C as well.
- Interest on refunds: Under a provision in the Income Tax Act, an individual is eligible to receive an interest on the excess tax they have paid from April 1 of the assessment year till the date the amount is refunded to the taxpayer. However, after the due date, the assessee will be paid interest on TDS after August 1. This means that you will lose out the interest accrued from April to July.
- No carrying forward of losses: Individuals can carry forward capital losses up to eight subsequent assessment years to be set off against future capital gains arising in the following years. However, if the income tax return is not filed by the due date, taxpayers will not be allowed to carry forward any losses.
The author is the founder and CEO of ClearTax