What will happen if I don’t file before the due date?
Though it is always beneficial to file your Income tax Return before the due date i .e. 5th August rather than filing it after the due date as it entitles you to avail the perks of early filing like faster refund process.
In case you still miss the deadline.Then, the next big question is, can I still file my IT return after 5th August?. And the answer is Yes! you can.Even after the due date has passed, you can furnish your return for at any time before the end of the relevant assessment or before the completion of the assessment whichever is earlier.This means that if you did not file income tax return for F.Y.2015-16(A.Y. 2016-17), you can file it until 31st March 2018.
But as they say, all good things come with a price and so does this one. The provision of Belated Return comes with the below-mentioned repercussions:
Interest and Penalty for late filing:
If there is tax payable and you could not file the return within the prescribed due date then interest u/s 234A @ 1% per month or part of the month will be payable along with the tax due. Also, interest u/s 234 B, 234C and penalty (at the sole discretion of the tax officer) of Rs 5,000 u/s 271F might also be payable depending upon the case. However, if all the taxes have been paid and only the return is not filed then Interest will not be attracted.
Delay in refund:
If you file your return after 5th August, Income Tax Department may take some extra time in processing your return u/s 143(1) and hence refund order may get delayed unnecessarily.
Cannot revise your return:
Revision of a late filed return is not allowed. This means that if you have not taken credit for a deduction under Chapter VI, in no way the I-T Department will consider that now. However, w.e.f., April 01,2017-even those who file their return late from F.Y .2016-17, can revise their return.
Losses from the business cannot be carried forward:
If the return is filed after 5th August or it is not filed at all, losses arising from business or profession and loss under ‘Income from Capital Gains’ head or ‘Income from other sources’ head cannot be carried forward to next year. But, if you file a late return (after 5th August but before the end of relevant assessment year), you can carry forward the loss arising under ‘Income from House Property’.
Seeing all these repercussions of missing the deadline for filing return, you should definitely file your ITR by 5th August (read Today) to escape from any interest or penalties. Filing ITR has numerous benefits which can be unwrapped only if you file returns on the timely basis. For any assistance, you can always reach out to Tax2win.