31 March is just 20 days away!! Its time to make calculations for your current year taxes (i.e FY 2017-18: AY 2018-19).
Have you filed your ITR for FY 2016-17; AY 2017-18??
Yes the return after note bandi…
If No, it is a matter of caution!!
But, you need not panic as you still have the last chance to file your pending ITR for AY 2017-18 (FY 2016-17) till 31 March 2018*.
*Previous to amendment bought by Finance Act 2016 normal time limit for filing ITR for AY 2017-18 would have been 31 march 2019 but the same was reduced by one year and the time limit is only till 31 March 2018.
Let’s comprehend the situation and talk about ,
Special considerations to be taken care of while filing taxes for AY 2017-18 (FY 2016-17)
Return after Demonetisation
Income Tax Return For AY 2017-18 (FY 2016-17) is of vital importance as it is the first ITR to be filed after demonetisation policy. If you have made any high value cash transaction or even near about transactions we suggest you to file your ITR for AY 2017-18. Non filing of return can lead you to face many consequences such as, receiving notices from income tax department, levy of penalty or, you may be asked to appear in person before tax authorities as well.
ITR to be filed under section 139(4) and not 139(1)
Since you are filing belated return it would be filed under section 139(4). Because a income tax return filed till original due date i.e. 31 July or 30 Sep normally is only filed u/s 139(1). If you are filing your income tax return yourself this a thing to be taken care of while filing ITR for AY 2017-18.
Last Date For filing Belated return changed
Finance Act 2016 bought a significant change in relation to last date for filing of Belated return. Until AY 2016-17 belated return was allowed to be filled till one year from the end of relevant assessment year. But, for AY 2017-18 and onwards the law has been amended to allow you to file late return only till the end of relevant assessment year. Which means practically one year has been reduced from the time limit, prevailing previously.
Selection of ITR forms wisely
The first step of filing your taxes starts with selection of correct ITR form. The Income Tax department notifies these forms for every assessment year. ITR forms are named as ITR 1, ITR 2, ITR 3, ITR 4, ITR 5 and so on. Each category of form relates to specific assessee who can declare his income through that form. Choosing a wrong ITR form can invalidate your ITR. So, one must make selection of ITR forms very carefully as the ITR form will relate to the AY for which you are filing return and not the year in which you are filing.
If you get delayed in filing your income tax return you are liable to pay interest at 1% pm under section 234A. But, guess what?? If you have already paid all taxes due and only filing of ITR was delayed, You will not be liable to pay any amount of such interest.
In this blog we understood special things to be adhered in case you skip filing your ITR on time. But these are just some important considerations and not a comprehensive list. These are the factors to be kept in mind for AY 2017-18 but for detailed knowledge on who is required to file ITR?? What is belated return?? Merits and demerits of filing Belated Return??