Make sure you don’t miss the due date to file income tax return. The due date to file income tax return is July 31. If you think that your duty is over once you disburse the payable tax; you are wrong. If you miss on filing the income tax return, you may have to face some legal & financial consequences. Here’s some legal consequence that can happen if you do not File Income Tax Return Before Due Date.
What if You do not File Income Tax Return Before Due Date?
If you do not File Income Tax Return Before Due Date, the Income Tax Department can take various actions against you. The action could be:
- if there are any unpaid tax which is due on you, then you will have to pay interest @1% per month from the due date till the date of payment of the due taxes.
- a late fee of Rs. 5000.00 for the return filed after the due date and before 31st December. After 31st December, the late payment will be Rs.10,000. However, if your income is upto INR 5.00 Lakhs, you will have to pay late fee Rs. 1000.00.
- a penalty upto Rs 10,000 under section 234F, even if you file a belated return.
- issuing a notice under section 142 (1) (i), if not filed income tax return.
- or, issuing a notice under section 148 for income escaping the assessment for non-filing of ITR.
- in the worst case scenario, you might get prosecuted and get a maximum jail term of seven years.
What can you do if you have not filed your Income Tax Return before the due date? Is there a provision for this?
Yes, there is a provision. Many of us fail to file income tax return before due date. However, make sure even if you have crossed the due date of income tax return filing, you still need to file your ITR. There is a provision of Belated Return.
What is Belated Return?
The income tax return which you will file after the due date or late is known as Belated Return. As per the rules, you can file income tax return after the due date anytime before the end of the relevant Assessment Year (AY).
If you are a salaried individual, you need to file income tax return of your earnings in AY 2018-19 i.e. Financial Year (FY) 2017-18. For this, the due date for you is on or before July 31, 2018. Now, if you fail to file your income tax return on or before July 31, 2018; you can still file income tax return on or before March 31, 2019. This is a fresh rule introduced in budget 2016 for AY 2017-18 only.
Recommended read: Top 10 Income Tax Rules that will Change from April 2018
As per earlier rules, you could have file belated return anytime before the completion of one year from the end of the relevant AY.
I am sure almost all of us are aware what FY & AY is.
FY (Financial Year):
The year in which you earn your income is Financial Year (FY). Eg. FY 2017-18.
AY (Assessment Year):
The year immediately following the FY in which your income is assessable to income tax is Assessment Year (AY). Eg. AY 2018-19.
How to File Belated Return?
The procedure to file a belated return is same as that of filing original income tax return. Just select FY as 2017-18 & AY as 2018-19, that’s all. So make sure you file income tax return before due date; else, belated return for sure.
If your income is upto INR 5.00 Lakhs per annum, then for you a simple one-page return has been prescribed. Since you have the option to file a belated return under income tax laws, please do avail yourself this option, in case you do not file income tax return before due date and avoid all the legal & financial consequnces.