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Don’t miss the ITR deadline- IT Department

By: Makemymoney

Income tax department keeps on reminding to all those who come in the taxable bracket to file for their ITR.  People who come under tax bracket must file for ITR before 31st. July as this is the last date for the 2017-18 assessment year. IT Department has set a huge amount of penalty for all those who will not file ITR on time. The penalty may invite you with a heavy amount of Rs. 10,000. And this won’t end here, delay in filing ITR may also make you liable to pay interest. According to the assessment year, 2017-18 tax slab is already declared

What will happen if you fail to file tax before the deadline?

  • A three-tier fee system has been introduced for those taxpayers who won’t be able to file ITR on time. If the return is filed beyond 31st.July but before 31st.December, the fee payable will be Rs. 5,000. And for all other cases, it will be Rs. 10,000, which is just a double of the previous one. For taxpayers whose total income won’t exceed Rs. 5, 00,000 then the payable fee for them shall be restricted to Rs. 1,000.
  • Revision time for ITR has been reduced to 1 years from 2 long years. From now onwards if the taxpayer has made any mistake then they are supposed to correct it till March 2019 (for FY 2017-18), so avoid making mistakes else file earlier for rectifying your errors.
  • If taxpayers failed to file ITR before the due date or within due date, interest at the rate of 1%per month or part of the month is levied up to the date of filing the same. And this interest is payable on tax payable after deducting the TDS, TCS, advance tax, other tax credit under the law.
  • If Income Tax Return is not filed within the due date then the taxpayer will not be allowed to carry forward loss under the head profit in profession or business or capital gain. However, loss under the head income from housing property would be allowed to be carried forward
  • Delay in filing for Income Tax Return will result in a delayed receipt of the tax refund. Earlier the ITR will be filed, the Central Processing Centre,  Bangalore of IT-Department process the ITR frequently, once the tax liabilities or refund of the taxpayer are determined. 

In order to avoid last moment rush better will to apply for ITR on time to avail all facilities in a well time framed way. Following are the things taxpayer should keep in mind while filing Income Tax Return This is a great advice for the entire taxpayer to file ITR well in advance for keeping yourself safe from bad consequences and punishable fee. Remember 31st. July’18 is the last date for filing ITR. 

Penalty on late filing for ITR:

The deadline for filing ITR was already extended by a month to 31st. August. Now that IT department has given an extension of almost a month, you should file for return on time. It is important to file your return due to changes introduced in last year’s budget. However, there is a penalty on late filing for ITR.  

The penalty 

There was no penalty till the year 2017-18 on filing late It-Return. However, from the year 2018-19 as per new section 234F issued by the government into IT Act penalty will be applicable. As per specification is given by Section 139(1) Act, an individual would have to pay a fee of up to Rs. 10,000 for filing ITR after due dates.

In the financial year 2017-18, if the taxpayer is liable to pay a fee of Rs. 5,000, if they file a tax return after the deadline i.e. July 31, 2018. The penalty fee is increased to Rs. 10,000, if the tax return is filed on or after 1st.January’19. However, if taxpayers total income is less than Rs. 5, 00,000 the fee amount shall not exceed.

If a taxpayer has any unpaid tax liability then a penal interest on the same would be levied, as applicable to now in case of the belated filing of tax. But if no tax is payable, the taxpayer won’t be liable to pay interest due to the late filing of ITR in the financial year 2017-18.

How to file ITR if you fail to make it on time?

The procedure of filing late ITR is similar to filing for Income Tax Return on or before the due date. The only difference is that while filing an application for belated ITR, the taxpayer has to select “Return Filed Under Section 139(4)” in form. Also, taxpayer remembers this while filing a belated return for Financial Year 2016-17, then he/she need to fill the applicable ITRs as notified for Financial Year 2016-17 only and not for any previous or later Financial Year. 

Updated

 

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