If Missed 31st July Deadline For Filing Income Tax Return? Then What?
Posted on October 01 2020
Most of the tax payers file their income tax returns by the 31st of July which is the deadline. Therefore, many of them miss it out due to other commitment in the professional and personal life. Missing out on the deadline does not mean that you cannot file your income tax return. In fact, if you have missed out in filing your income tax return for the last year by the end of March 2016, you can still file your income tax returns however there are few catches.
What Section 139(1) Says?
Every person -
·Being a company; or
·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 crossed the maximum amount which is not chargeable to the 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 filing of income tax returns for individuals and those whose accounts are not liable to any audit. The assessee can do it by himself or take the help of a chartered accountant who can help him to file his income tax returns by asking for little 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 missed out in filing your returns by the due date? Do not feel discouraged. You can still file your income tax returns without paying any penalty until March 31, 2017. Therefore, there would be following significances:
1. Failing in filing I-T Returns within the due date attracts interest @ 1% p.m. on the balance which is tax payable from the due date to the actual date of filling.
2. If a person required to file Income Tax Return u/s 139(1) fails to file the Return before the end of the relevant Assessment Year, i.e 31st March 2017 a penalty of Rs. 5,000 shall be exacted. Means you can file return for March 16 ending till 31st March 2017. Even NRI can take the benefit of this provision and claim a refund of TDS, if there is any deduction made.
3. Most of the time the tax payers make mistakes while filing their income tax returns and later notices the error made. In such cases, there is an opportunity for them to file revised returns. Therefore, this may not be the case if you miss the deadline. You are not allowed to file a revised return if you complete the filing after the 31 st of July.
4. If you fail to file your income tax returns before the due date then you will have to yield the benefit of carrying forward the losses acquired under the head `Capital Gains’ and `Business Losses’.
5. Delay in filing income tax return could mean having to let go of the interest due on the tax refund if there is any.
Importance of filing Income Tax return for various reasons:
1. While applying for VISA, the embassy of the respective country insists
For last 3 years the Income Tax returns documents for eligibility.
2. For applying a bank loan (personal loan, housing loan or car loan), the Income Tax papers are one of the important requirements for eligibility.
3. For individuals who are currently employed and are in a plan to become an entrepreneur in the future is required to file their IT returns regularly. This is because when a company / Partner apply for a bank loan then the IT papers of its directors / Partners are also required.
Important points to be noted for filing return after due date:
If you are filing the income tax returns after July 31 2016 then you are required to take extra care to make sure that there is no error in your returns. Once it is filed, you will not get any opportunity to rectify your mistakes later, so it cannot be filed as revised returns. You are required to make sure that the documents like Form-16, bank statements, 80G receipts; bank account details etc are handy. These documents will help you to verify all the details that you are required to enter in your income tax return form. You need to double check your bank account details, as refunds will be credited directly to your account. At last if you have doubt or not sure you can always rectify your Income Tax Return by a Chartered Accountant before submitting it.
Tax Assist is a professional income tax consultancy in India for both corporate houses and individual tax payers; the latter comprising Salaried Individuals, Seafarers, Professionals and Non Resident Indians.
With the help of Tax Assist and its team of income tax professionals, taxpayers can minimize their Income Tax liability, maximize their net income and create opportunities to save for current and future needs while maintaining proper accounting standards and income tax returns which are compliant with the Law.