Did you missed the income tax return (ITR) filing deadline

By | 2 September 2015

What happens if you missed the deadline of 31st August to file your income taxCalendar with Deadline Circled return?  While an assessee has paid advance tax and TDS (ideally) by 31st March of every year, 31st August is the last date for filing income tax returns (ITR) as set by the Income Tax department. Did you missed the income tax return (ITR) filing deadline

In our current newsletter, we will try to analyse, what happens when you miss the deadline and what penalties you might end up paying. Did you missed the income tax return (ITR) filing deadline

It is here relevant to understand the concepts of Previous year and Assessment Year. For financial year ended 31 March 2015, 2014-2015 is called the Previous Year (PY) as that is the year in which you earned your income while 2015-2016 is called the Assessment Year (AY) as you are assessing your income in 2015-2016.

If you missed the income tax return (ITR) filing deadline of 31st August, the income tax department gives a reprieve by allowing you to file it after 31st August without any penalty if and only f you file before March 31st 2016 and you have no tax liability to pay to the government. This means that you have all the 12 months of the Assessment Year to file your returns provided your tax liability is zero.

After the expiry of the Assessment year i.e. 31 March 2016, you will have to pay penalty of Rs 5,000.  This penalty can be waived if you have a genuine reason for not having filed your ITR.

What happens if you have a tax liability and have missed the income tax return filing deadline?

In such a case, you will have to pay 1% per month on the amount of outstanding tax liability starting from August. So, from September 2015, you will pay a penalty of 1% per month on your outstanding tax liability till the time you file your return. Obviously, if you have outstanding tax liability and are filing your ITR after the Assessment Year is over, you will pay 1% per month and Rs 5000/- as penalty.

Where you don’t have outstanding Tax liability   Where you have outstanding tax liability
ITR can be filed till end of the Assessment Year (31 March 2016) with no penalty;ITR can be filed upto 31 March 2017 with a penalty of Rs 5,000/- ITR can be filed with a penalty of 1% per month on the outstanding tax liability;ITR can be filed upto 31 March 2017 with a penalty of Rs 5,000/-

Important points you need to be aware of, when you miss the deadline to file tax return by 31st August:

  •      You can file your Tax return upto 31 March 2017 with a fixed penalty of Rs. 5,000;
  •      You will not be allowed to revise your return in case of mistake in original return;
  •      You cannot carry forward any losses that you have incurred in the year;
  •      In case of refund, interest will be calculated from the date you filed your return instead of 1st April;

Annual Tax return filing may become a troubling obligation, only if you ignore to understand its importance and related uses. As a responsible tax abiding citizen, make a resolution to file your tax return in time every year. It will not only ensure a credible financial history but will also ensure a peace of mind.

XPERT COMMENTS:

The primary purpose of e-filing is to ensure faster refunds for Tax payers and to curb the unhealthy practices commonly prevalent in the Income Tax departments. The measure of government asking to file e-return for persons having an income above Rs 5 lakhs is a brave step towards speedier returns and less paper work that was getting irritating for many Assesses over the years.