HURRY UP!! LAST CHANCE TO FILE INCOME TAX RETURN FOR F.Y. 2017-18 -ONLY 5 DAYS LEFT

HURRY UP!! LAST CHANCE TO FILE INCOME TAX RETURN FOR F.Y. 2017-18 -ONLY 5 DAYS LEFT

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HURRY UP!! LAST CHANCE TO FILE INCOME TAX RETURN FOR F.Y. 2017-18 -ONLY 5 DAYS LEFT

The deadline to file Income tax returns for the Financial Year 2017-18 (Assessment year 2018-19) without any penalty was of July 31, 2018, which was later extended by one month to August 31, 2018.

Due to the fact that it was the First year, many people are still to file their ITR. If you are among those who missed the deadline to file the ITR for AY 2018-19, you would need to file a belated return. The department allows you to file returns till one year from the end of relevant financial year, in case you miss the deadline. This means that for financial year (FY) 2017-18, which ended on 31 March 2018, you can file returns till 31 March 2019.

Until last assessment year (AY) there was no penalty for filing belated income tax returns. Effective from the financial year 2017-18 a late filing fee was applicable for filing your returns after the due date i.e. 31st August 2018 under section 234F.

Penalty for delay in filing return:

Particulars Amount of Penalty
If the return is furnished after the due date of filing but on or before the 31st day of December. Rs. 5,000/-
If returns filed later than 31st December 2018 Rs. 10,000/-

NOTE: There is a relief given to small taxpayers – the IT department has stated that if the total income does not exceed Rs 5 lakh, the maximum penalty levied for delay will be Rs 1,000.

Disadvantages for filing belated returns:

  1. Penalty:

According to the amendments made in the Budget 2017, new section, 234F, was inserted by the government in the Income Tax Act. As per this section, taxpayers are liable to pay a penalty as specified above.

  • Cannot carry forward losses:

If you file a belated return you cannot carry forward losses (except loss from house property). Losses under the following heads of income: Income from business and profession including speculation business, capital gains, and income from other sources, cannot be carried forward in case a belated return is filed by the tax payer. 

  • Levy of interest u/s 234A of Income Tax Act:

Where the return of income for any assessment year is furnished after the due date, or is not furnished, the assessee shall be liable to pay simple interest at the rate of 1% for every month or part of a month comprised in the period commencing on the date immediately following the due date.

Benefits of filing ITR:

  1. Easy loan approval:

One of the preconditions for approval of loan is submission of ITR’s for last 3 financial years. Filing the ITR will help individuals when they have to apply for a vehicle loan (2-wheeler or 4-wheeler), House Loan etc.

  • Claim tax refund:

If you have a refund due from the Income Tax Department, you should file your Income Tax Return to receive the refund as early as possible. However, in case you are filing belated returns, you may lose the interest that would be due on the refund, because delay in filing would be your mistake.  In such cases, interest will be paid from date of furnishing the return to the date of grant of refund.

  • Quick Visa processing:

Most embassies & consulates require you to furnish copies of your tax returns for the past couple of years at the time of the visa application.

  • Avoid penalty and interest:

Non filing of return will lead to levy of penalty u/s 234F and interest u/s 234A of income Tax Act.

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