Income Tax Return Filing after Due Date: Consequences of late Filing the Returns
Income Tax department do not impose heavy tax even if the tax returns are filed late. IT returns can be filed before the end of assessment year. Disadvantage of filing the returns late is the losses such as business loss, capital loss and so on, cannot be carry forwarded.
New Delhi: Income tax department of India extended the last date for filing income tax returns till 5th August, 2013. There are still some people who did not file their returns due to one or the other reason. There is still chance for such people. The income tax returns can be filed before the ending of assessment year. If all the taxes are already paid, there will be no problem for filing the IT returns late.
If the taxes are not paid, filing the IT returns late may create some problems. For this every tax payer should know in which category he falls as a tax payer. One of the main disadvantage with filing the returns late is, there will be no chance to make changes to them. Few exemptions that section 80 C offers will not be applicable to them. Let us see the consequences of filing the IT returns late.
Consequences of filing the IT returns late
- Tax deduction is applicable to salaried person at source. Businessmen pay advance taxes. If such people do not file the returns in time, there will be no problem. These people can file their returns before the end of assessment year without any penalties. After March, 2014 these people will have to pay a penalty of Rs. 5,000.
- Persons who have to deposit balance tax though they paid advance tax or TDS, can also file their IT returns before the end of assessment year. There will be no penalty but they may have to pay 1% interest on the balance tax to be paid.
- If TDS or advance tax is paid more than what should be paid, tax refund can be claimed. If IT returns are paid in time, refund process will not get delayed.
- If IT returns are not paid in time, they cannot carry forward the Business losses in that year. There is an exemption for this rule also. The losses on profits related to families can be carry forward though the returns are not filed before the due date.