Income Tax: Penalty for late filing

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What is the last date to file taxes? Each and every tax payer knows the answer to this question – It’s 31st July. It’s quite common that we postpone tax filing till the final day. Be it delay in getting Form 16 or any technical issues, some of us tend to miss this deadline too. There are various situations which impacts our tax filing status in case we file post due date. Let us look into such situations now.
 
Can we file Revised Return?

Perfection is something which pertains only to the dictionary. While filing returns, we might miss out on something. We would love to have a second chance for this. Good news is that we can file revised returns up to 31st March 2015. However, Income tax department gives that chance only to those who file within the ‘D’ day i.e. 31st July. In case you make a mistake while filing taxes after this date, you cannot file a revised return for that particular assessment year.

 

How about ITR-V?

Tax filing does not end with uploading in the IT website. Once we finish the tax filing process with the IT department, we would receive the ITR-V acknowledgement in the mail. You need to take a printout of the same and send it to CPC, Bangalore. Do not worry if you have not sent it within 31st July. You can send it through normal/speed post within 120 days of receiving ITR-V. Once this is received by CPC, you will get an acknowledgement mail for the same.
 
If there is any Tax Payable

Beware, if you are in this situation. The more you delay, the more you pay. There is an interest penalty @ 1% per month for filing taxes post due date. In case of delay by a few days, interest is calculated on a pro-rata basis. Hence, it is all the more important that you file sooner than later if you have missed out on the deadline.

 
What if Tax Liability is Nil?

In such a case, you can file your returns by 31st March of next Financial Year. In case you miss this deadline too, there could be a penalty up to Rs. 5000 from the Assessing Officer.
 
Are you Eligible for a Refund?

This is similar to the above situation. You can file returns by 31st March next year. However, in such as case, there might be a delay in processing of your returns and thereby delay in receiving refund. There are tons of refund issue cases in the past to prove this.

 
Conclusion

Apart from the above mentioned cases, there is one more disadvantage if you miss the deadline. You may not be able to carry forward the current year’s losses to the next assessment year in order to set them off against any gains incurred.




Source: InvestmentYogi is one of the leading personal finance websites in India