Filing of Income tax is obligatory for all the salaried personnel and organizations as mandated by the central government if their income exceeds the exemption limit.
The Income tax revenue department to make the income tax return filing easy, have designed an online web-based system for everyone’s perusal. The government sets a deadline during which the assessee must file their ITR but in-case they can’t then they must file what is called a belated return. The individual can file a belated return as per section 139(4).
Any Difference In Filing Income Tax Return Filing Before And After The Deadline
The process of filing for belated return is the same as applying before the deadline, but one should remember to check the following points:
- When filing the return online on website www.incometaxindiaefiling.gov.in, make sure to select After Due date 139(4) under Return filed under section.
- Also, make sure you choose the right ITR forms in accordance with the financial year you are filing belated returns for. It’s just that the ITR has been coming up with new forms every financial year.
- Be wary of the deadline dates for the belated return.
- If there are any tax dues after deduction, then the penal rate of 1% for every month will be applied. This can be avoided even if you file the ITR after due date by paying the die amount before the due date of the belated return.
- The two ways of filing the ITR, which is online or by downloading the excel or java utility, filling and uploading the detailed information on the website.
- The verification of ITR remains the same as well which is via e-verify using Aadhar, Net-banking or OTP. It can also be done by sending ITR-V to CPC Bengaluru.
Keep An Eye Out For The Due Dates Of The Belated Return.
To avoid a penalty for belated return, it’s important to be mindful of the dates. Let’s clear it with an example. For the assessment year 2017-2018, the financial year 2016-2017, the salaried individual can proceed with income tax return filing until 31st, March 2018. In short, there would be no penalty incurred for filing belated returns for the financial year 2016-2017, until 31st March 2018.
Repercussions of delayed filing of returns: It might take you by surprise
It’s advisable to file the tax return on time as it might save you a lot of money on interest and other losses. The two main consequences are highlighted below:
- Penalty and Interest on unpaid taxes: A penal rate of 1% is charged on every outstanding tax after deductions per month till the date of income tax return filing. A penalty of Rs. 5000 which has now been increased to Rs.10000 from this financial year (2017-2018). This is at the discretion of the Tax consultant and can vary from case to case. Also, a penalty of Rs.1000 is applicable for income earners of up to 5 lakhs.
Note: Make sure you submit the outstanding tax liability at the earliest to avoid paying higher interest.
- Not allowed to carry forward losses: In cases of belated returns losses under the following incomes: capital gains, income from the business cannot be carry forward to the following years to offset against any future gains. The only exception to the rule is house property loss.
- Belated returns cannot be revised:
Revised return is basically a correction request to an improperly filed tax return. All the returns for the financial year 2016-2017 and subsequent years which is belted tax return can be revised. Any other returns filed for any of the previous years’ cannot be revised due to a revision in the income tax law from the year 2016-2017.
Note:
- From the assessment year 2018-2019, even the time limit to file for the revised return has been truncated, and it has now to be done on or before the end of the assessment year. Prior to this the time limit was set to 1 year from the end of the relevant assessment year.
- The revised return can be filed by entering in the acknowledgment number and the date of filing the of the original tax return in the revised application form.
Pay On Time and Save Dime with Timely Income Tax Return Filing
Although there is a provision to file the income tax return after the due date of the original deadline, it’s beneficial for the taxpayer to do it within the prescribed time due to benefits which come under the purview of the original deadline. At least taxes should be paid within the due date even if the return file is delayed as it mitigates the effect of the penal rate applicable otherwise.
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