Missed income tax returns (ITR) filing deadline? What to do now
Here is all you need to know about what happens after you miss the ITR filing deadline and the consequences you have to face.
In case you are among the minority tax payers who have missed the extended deadline to file income tax returns (ITR) by 31 August, then be ready to shell out a fine to the Income Tax department. Belated ITR filing attracts punishment in the form of a penalty as well as reduction in the number of benefits you get as a taxpayer.
The I-T department allows anyone who has failed to file ITR within the due date, which was extended by a month from July 31 to August 31, to file income tax returns for any previous year at any time before the end of the relevant assessment year or before completion of the assessment, whichever is earlier. In this case, you will have to file it by March 31.
You will again be at a loss if you wait till March to file your tax returns. The penalty for belated IT returns will not be more than Rs 5,000 if you file it by the end of December 31. If your total income is not more than Rs 5 lakh then you face a reduced fine of only Rs 1,000.
However if you miss the December 31 deadline also, then the penalty too shoots up to Rs 10,000.
Also read | How to file ITR FY2017-18: A guide
Interest on tax due
The financial punishment for not filing ITR within due date is not limited only to a penalty. You will also have to pay interest on tax due at the rate of 1% per month till the time your ITR is filed.
ITR revision not allowed
An IT return filed within the due date can be revised later on if you find some reporting error. This option is not available to those who file a belated ITR. Therefore, you will have t be very careful while filing a belated ITR so that you don’t miss out on something and regret later.
No interest on refund
Had you filed ITR on time and had income tax refund due, you would have been eligible for an interest on refund claim under certain circumstances but not now.
Carrying forward losses not allowed
According to income tax rules, you cannot carry forward any loss other than house property if you are filing a belated ITR.
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