People are generally under the impression that the due date of July 31 is now or never for filing of the ITR and therefore if one fails to file the ITR by the due date, he cannot file it later. It is not so exactly. However if you fail to file your ITR by the due date some consequences follow. Let us discuss the consequences.
What is the due date for filing of my income tax return?
For salaried persons and small businessmen the due date for filing income tax return is July 31, 2018 for the year ended March 31, 2018. For people in business or engaged in profession and whose accounts are required to be audited due to turnover exceeding a threshold limit the due date is September 30, 2018.
What happens if you miss the deadline?
In case you fail to file your ITR by July 31, you can still file it latest by March 31, 2019 with some mandatory fee. So if you file your ITR after July 31 but by December 31 you have to pay a late fee of Rs. 5,000. The fee goes up to Rs 10,000 if you file your ITR after December 31 but by March 31, 2019 . Beyond this, you can not file it. In case of small taxpayers the late fee shall not exceed Rs 1,000 in case the net taxable income does not exceed Rs 5 lakhs for the year.
If you fail to file the ITR by July 31, you cannot carry forward losses of current year to set off against incomes of later years. Earlier, there was restriction on revision of your ITR if you failed to file it by the due date but now that restriction has been lifted.
What happens if I fail to file my ITR by March 31, 2019?
In case you fail to file your ITR even by March 31, 2019 the income tax department can levy a penalty of 50 per cent or 250 per cent of the tax sought to be evaded depending on the circumstances. In addition to the penalty, the income tax department can also launch prosecution for not filing of the ITR in case the amount of income tax liability for the year exceeds Rs 3,000 and you can be punished with imprisonment for a minimum term of three months and which can go upto seven years.
So what are you waiting for? File your ITR by July 31 to avoid the late fee, interest, penalty and prosecution.
The author is a CA, CS and CFPCM