Missed March 31 deadline for filing Income Tax Return (ITR)? This is what can happen next

Missed March 31 deadline for filing Income Tax Return (ITR)? This is what can happen next

The Income Tax department has been setting new deadlines for filing Income Tax Return (ITR), with the latest passing on March 31. And, those failed to file it this time, might have to face some trouble. The last date for filing ITR was set as August 2018. This was for those who were needed to furnish ITR for Assessment year 2018-19 which would be for fiscal FY18. When a taxpayer misses this deadline, then they fall under the category of late filing fees. Between September 01, 2018 to December 2018 end, the late filing fees were Rs 5,000 to those whose annual income was above Rs 5 lakh. If you missed this chance as well, then Rs 10,000 late filing fees was levied for filing ITR between January 01, 2019 to March 31, 2019. Also, those who have income below Rs 5 lakh will pay late fee of Rs 1,000 only. But, if you have missed all these deadlines, you fall under the category of prosecution and different set of penalties.

Now for FY18, you can only file ITR when the income tax department sends you a notice.

Firstly, if you don’t file ITR, the authority may call upon proceedings for prosecution for a term of starting from 3 months to 2 years and with fine. Sadly if your owing exceeds Rs 25 lakh, then you can expect the period to be extended up to 7 years.

 However note that, the above proceedings will not be initiated where the net tax payable does not exceed Rs 3000.

Apart from this, under section 270A(1), penalty of 50% of taxable amount will be payable on under-reported income. Also, f under-reported income is in consequence of any misreporting thereof by any person, the penalty shall be equal to 200% of the amount of tax payable on under-reported income.

Notably, in a ClearTax report, the consequences for not filing ITR on due date can be worse. Here’s a list of factors that will take place.

Unable to set off losses!

Losses incurred (other than house property loss) are not allowed to be carried forward to subsequent years. You cannot set off these losses against future gains, if the return has not been filed within the due date. However, if there are losses under house property, carry forward of losses is permitted.

Interest on the delay of filing return!

Apart from the penalty for late filing, an interest under section 234A at 1% per month or part thereof will be charged till the date of payment of taxes. It is important to note that ITR cannot be filed unless taxes are paid. The calculation of the interest will start from the date falling immediately after the due date i.e. 31 August 2018 for AY 2018-19. So, the longer you wait the more you pay.

Delayed Refunds!

In case you’re entitled to receiving a refund from the government for excess taxes paid, you must file the returns before due date to receive your refund at the earliest.

Hence, you must visit your ITR filing portal and file a belated return in order to avoid more further prosecutions.

 

Source:- zeebiz

Share: