Last day to file IT returns: Here’s what will happen if you do not file it today
- A technical glitch in the last two days of July gave us an extended date of August 5 as the last day to file IT returns
- What if you miss today’s deadline also? Jail? Penalty?
- Here’s what could happen to you if you do not file your income tax returns on time
FollowJailed for not filing your income tax returns on time? Don’t worry that is not going to happen.
In fact, you have one more window of opportunity to file your income tax returns if you do not file it on August 5. It is called Belated Returns.
If the income tax returns are not filed within the prescribed due date under section 139(1), then the same can be filed as belated return within one year from the end of the relevant assessment year. You can file the return for Assessment Year 2016-17 up to March 31, 2018.
What happens if you file your IT returns after the prescribed date
Penalty
Non payment of taxes results in a penalty in which you pay an interest of 1% per month or part of it until the taxes are paid. There is also a penalty of Rs 5,000 but this is not imposed on every late case, it depends on case to case.
According to an article in ClearTax: For returns of FY 2017-18 and onwards, penalty of Rs 5,000 will be charged for returns filed after due date but before 31st December. If returns are filed after 31st December, a penalty of Rs 10,000 shall apply. However, penalty will be Rs 1,000 for those with income upto Rs 5 lakh.
Losses go unmentioned
Losses incurred (other than house property loss) are not allowed to be carried forward to subsequent years.
Your financial record is left incomplete
Yes, your Income Tax returns help determine and is a record of your financial life. For any future major investment like buying a house, taking a loan etc..your records of the past three years are required and don’t think you can bribe the bank through accepting incomplete returns.
You can kiss your visa plans goodbye
Planning on a green card, or a visa, then you need to file your IT returns on time because without these records in your kitty, you are not going anywhere.
Are you willing to forgo the refund you may get?
Turns out some of us may actually be owed money and that means you will be getting money back. This is the time when you get to claim a refund, are you sure you want to let go of this opportunity?
Be prepared for a letter from the IT department
If you thought no one was noticing. Then you are sadly mistaken. An I-T officer may detect the non payment and can issue a show-cause notice to the taxpayer, and if he is not satisfied with the explanation, may issue a penalty order under the relevant section of the Income Tax Act.
