The Government has extended the deadline for filing the Income Tax Returns (ITR) to August 5th, 2017. Earlier, the last date for filing the ITR for financial year (FY) 2016-17 or assessment year (AY) 2017-18 was July 31st, 2017. So, if you are amongst the people who missed the first deadline, then you still have a shot to file it before the extended deadline. But, what if you still miss the deadline, will you still be able to file the ITR? Will you be penalised for not filing the tax within deadline? These are some questions that taxpayers who have missed the deadline will have.
Let’s go through them one by one.
Can you file the ITR after the August 5th deadline?
Yes, even if you miss the extended deadline of August 5, you would still be able to file your IT return. Your new deadline would be to file the ITR before March 31, 2018 i.e. end of the assessment year.
There are certain benefits that you get only if you file the ITR within the July 31st deadline (which is now extended to August 5th, 2017).
By filing the ITR on time you are entitled to get interest on Tax Deducted At Source (TDS) from April 1,, 2017. But, if you file the ITR after the deadline, then you will get the interest on TDS from that delayed filing date only. Delaying the ITR can put you into a scrutiny by the I-T department or you may receive a notice asking for an explanation.
Drawbacks of late ITR filing
If you delay in filing the ITR, then you need to pay an interest of 1% per month from the due date to delayed filing date. If you file the ITR late, then you also lose the eligibility to carry forward losses on various heads. Late filers cannot carry forward loss from capital gains, speculative loss, loss from business income etc. However, you can carry forward loss from residential property.
Additional Reading: How To Calculate Capital Gains And Save Tax
Another big drawback of filing the ITR late is that you lose the eligibility to file a revised return. If you have made mistakes or missed to mention some income or investment detail in the ITR, then you are allowed to file a revised return to rectify it, provided you had filed the return within deadline of August 5th, 2017. In case of return filing after the due date, then you will have to comply with the IT department notice accordingly for any kind of mistake or wrong information.
What happens if you miss the deadline of March 31st, 2018 too?
If you miss the final deadline of March 31, 2018 too, then you may be asked by the IT department to explain the reason for the delay with requisite proof. From next year onwards i.e. starting from April 1, 2018, if you file a late ITR and your earning is greater than Rs. 5 lakh, then, you are liable to pay a penalty of Rs. 5,000 if the ITR is filed before Dec 31, 2018, and Rs. 10,000 penalty if the ITR is filed after Dec 31, 2018. For people whose income is less than Rs. 5 lakh, the penalty would be restricted to Rs. 1,000.
Notice from the IT department
If you couldn’t file the ITR within the deadline and you receive a notice from the IT department, then do not ignore it. Normally, the IT department allows ample time to respond or to file your taxes, so be diligent and get to doing it within the stipulated time-frame.