The last date of filing ITR for any individual in India is 31, July 2016 and it is indeed coming very fast. There are many taxpayers who are not bothered about this due date as they think that they have paid all their taxes, however, they are not aware of the possible consequences of not filing ITR before this date. Money Dial will shed some light on what could be possible outcomes of missing out on ITR due date.
4 Things would be missed are listed below:
“If you file the income tax return for the financial year 2014-15 after the due date of 31st July 2016, you would be losing the facility to reverse your filed income tax return. Reversing income tax return means that you won’t be able to update any of your details if they have entered incorrectly the first time around. These details could be your address, bank details, any other income details etc. Incorrect information can have serious consequences ranging from rejection of your filed ITR to getting penalized for wrong information.
2. Loss of interest refund:
There are many cases where the taxpayers expect some refund as part of their ITR application. This refund can be due to any advance tax or TDS paid by the person. Due to the late filing of ITR, interest on the refund would be lost. Currently, income tax department is paying interest of 6 % on such refunds. This interest on refunds is usually calculated from the 1 April of assessment year till the date of refund. In case of late filing, the start date of refund, if any, will be from the date of application rather than 1st April so interest accumulated from 1st April to filing date will be lost.
3.Cannot carry forward Losses:
If the person files ITR in time i.e. on or before the due date, they can carry forward their losses. This loss can be carried forward for a period of maximum five years. While accounting for this facility, you can include losses incurred on your investment in the stock market as well. However, this facility won’t be available if you file ITR post due date.
4.Unpaid Tax Liability:
Due to some reasons if you are having some unpaid tax liabilities and you have missed the last date of filing income tax return. In such situation, income tax department is allowed to impose a penalty which would be at the rate of 1% from the date of filing ITR to the actual filed date. This penalty would be very heavy which can be avoided by filing the ITR on the due date.
There are some people who even don’t file the income tax even by 31 March of the relevant assessment year. In that case, income tax department can impose a penalty of Rs 5,000. But only if you are unable to provide the reason of delay to the income tax officer.