While the government has extended the last date for filing income tax returns to August 5 because of some technical glitches, if an assessee still misses the deadline, it does not mean that he cannot file his tax returns for the assessment year 2017-18. . Missing the deadline does not mean you cannot file your return. Infact if you have missed to file your return for last financial year ended March 2016, you can still file till 31 March 2018 however there is some catch. Read the article to know more.
What Section 139(1) Says?
a. being a company; or
b. being a person other than a company, if his/her total income or the total income of any other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which is not chargeable to income-tax, shall, on or before the due date, furnish a return of his income or the income of such other person during the previous year, in the prescribed form.
31st July is the last date to file tax returns for individuals and those whose accounts are not subject to any audit. The assessee can do himself or call on his chartered accountant who can file the tax returns by just asking for few information.
What Section 139(4) says?
If a person has not furnished the return of income within the time allowed under section 139 (1), then he may furnish the return of income at any time before the expiry of one year from the end of the relevant assessment year or before the completion of assessment, whichever is earlier.
What if you have not filed your return by due date?Don't feel dejected. You can still file the returns without paying any penalty until March 31, 2018. However there would be following implications:
1) if an assessee misses the deadline he will not be allowed to file a revised return.
2) He cannot carry forward losses. If an individual files returns within the due date, any loss is allowed to be carried forward for eight years for set-off against incomes of the future years. This set-off can help reduce tax liability for the future years. However if not filed on time losses cannot be carried forward
3) The assessee will have to pay interest on any tax that had not been paid.
4) Delayed filing also means delayed refunds.
There will be no penalty for filing belated income tax return after due date for financial year 2016-17 till March 31, 2018. The government had introduced a maximum late fee of Rs 10,000 for delayed filing of income tax returns. This will be applicable from April 1, 2018 and will not apply for returns filed for FY2016-17.
If one delays filing returns and in case there is any tax due on March 31 of the financial year, then the assessee will be liable to pay an additional interest under section 234A at the rate of 1% per month on that amount. Even if you file a belated return, it is advisable to deposit the outstanding tax liability at the earliest so that the interest payable is minimized. So, it makes sense to file returns on time to avoid paying the additional interest.
Revised returns deadline changed to one year after from the end of relevant fiscal year
Under Section 139(5) of the Income Tax Act, an assessee can file revised return within two years from the end of the relevant fiscal year or before the completion of assessment by tax authorities, whichever is earlier. The Finance Act of 2017 reduced the time limit for filing such revised return to one year from the end of relevant fiscal year or before the completion of the assessment by tax authorities, whichever is earlier. This amendment will be effective from fiscal year 2017-18. A revised return can be filed if the assessee has filed the return within the due date.