What Happens If You Miss 31 July Deadline For Filing ITR?
Posted on October 01 2020
By now you all have received your Form 16 from your employer and must be planning of filing your income tax return by now. The deadline for filing I-T return is not too far is just approaching, the 31 of July. But, do you know what happens if you miss out the deadline?
Missed the deadline
· File belated return: If you miss out on the deadline of the 31st of July then you can file your returns within two years from the end of the relevant financial year. For FY 15-16 the time available to file the belated return would be 31 March 2017. Therefore, if there is any error to it then you cannot revise the I-T return. The window is open only for the revised filing of returns by the 31 st of July. This way you even lose out of the right to carry forward the losses for the future set off (except loss from house property).
· Penalty: If you miss out on the deadline for the I-T returns, the department levies an interest and in some cases a penalty as well. The interest is at 1% per month on the outstanding amount for the unpaid tax. Therefore, if you have paid all your taxes preceding to the due date, but only filing the belated return then you will not have to pay any interest. Also, if you do not file your I-T returns within one year from the end of the relevant financial year then you may be charged a lump sum penalty which is Rs. 5,000 by the assessing officer.
· Carry forward the losses: If you have had acquired some losses in the equity or mutual funds in the relevant financial year and you want to carry forward it for exception in the consecutive years then you can do it only by filing your income tax return by the 31 st of July. If you miss out on this deadline then you are not allowed to carry forward the losses. Therefore, the loss from the house property is an exception which can be carried forward even if you do not file your income tax returns by the 31 st of July. If you miss out on the deadline then you cannot show the losses for the offsetting income to get exception in the coming year. To avail this tax benefit, you are required to file your income tax returns on time.
What should you do?
If you delay the filing of the income tax returns then the refund process will also get delayed. If you have never filed your income tax returns in the past then do it at the earliest as you may also require to apply for a permanent account number. You can still file your income tax returns for FY 15-16 onwards. If you cannot do it yourself you may also require a professional help of a chartered accountant or an I-T returns filing portal.
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.
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