782016 Why you shel fle your tacretura by July 31 The Economic Times ‘Tae Economic Tim secemsjzimn | SOE | menvs cow wen rss) Uso creare — Deuninget SORE MARKET STATS | 29,000 v.sS0 | 8,632 295 20,909 4380 67.37 ao2» — PORFOUD ne Why you should file your tax return by July 31 by Prat Kapoor ECONCMCTIUESCOM | Ju 25, 2018, 0233-187 ‘The due date for fling income tax ceturn for Indviduals-July 34-18 fast approaching but several people think that if one has pa all ‘one's taxes there is no adverse consequence ‘oven if ona misses the tax return fling deadline. However, this fs not corect. Evan If ll your taxos have been paid you would stil lose out on UUnieyou cant yoorgenonel _cetaln benefis Ifyou do not file your income Jncon xr eon torte die tax retum by the due date. tomy 31 butyos wows ose aon bone yo d o, Cannot revise a belated return "if you file your income tax rotum for FY 2046- 16 aitor tho due date you cannot file 2 revised return later in case you discover ‘a mistake in the one originally fled", says Kuldip Kumar, Partner and Leader Personal Tax, Pw. This essentially, means thal in case you discover that you hhad forgotten to declare some income in the rolurn or made a wrong statement and you later wish to file a corrected or 'tevised! retum you cannot do 80 for FY2015-16 in case the original return is belated, he oxplains. In such a case, if your mistako Is discovered by tho Income tax assessing officer then he would ‘not accapt a ‘revised return’ and the mistake would be penalised as per rules. In effect you lose the facily of admlting to a mistake on your own and correcting without being penalised - wherever e penalty Is applicable, ‘The rule that belated retums cannot be revised comos trom Section 139(6) of the Income Tax Act. However, Itis to be noted that this section has been ‘amended - wee. Apri 01, 2017 - by Budget 2016 to alow even those who fle a ‘elated return to revise that rolurn later. So it would be possible fo revise belated returns fled after 1.4,2017 i, for FY2016-17 but rotums fled for FY 2018-16 are not covered under this amended provision. Hence, there is no scope of revising a retum fled after the due dato July 31, 2016 forthe FY 2015- 16, cariios Kumar. Loss in interest on refunds In case you claim a refund in your return of any advance tex paid/TDS, you would lose some ofthe interest (currently 6% por annum paid by the tax dopartment) on such rofund. The interost on rofund is normally computed from April1 of to assessment year (the year immediately following the financial year {or which the return is fed) tl the date of grant of refund, says Kumar. Howaver, in case of a belated retum (i. return fled after due date) interest is, ‘computed from the actual dale of fling the return fil the date when refund is ‘granted. This means loss ofthe Interest thet would have been paid for the period April tl dato of filing the return, Even if you file the return one day after tha due date you would be losing Interos fr at least four months - April, May, June and July (presuming due date isnot extended beyond July 31), No carry forward of losses you flea belated return you cannot carry forward losses (except loss from house property) "Losses under the following heads of income: Income from ‘business and profession incudina speculation business. capital aains. and tnilacenanntimes.indetimes.comhvealintaxAvhy-you-should-fle-youtaxrern-by uy tla cleshow/S976080.crsxtpagent 42782016 \Wy yu sat fl your tox en July 31 - Th ore Times Income fom other sources cannot be cared forward in case a belated return is filed by the tax payer. The return fier will not be allowed to carry forward these fosses even if all axes have been paid in lime ifthe rotum is belated,” says. PwC's Kumar, Delayed return where tax remains unpald Ifyou have any unpaid tax lebilly fling your return after the due date would result in levy of penel interest @ 1% per month from the due date of fling the return tl the actual date of fling. This would be a heavy and avoidable payout, ‘What is more, tax authorities can inilate prosecution ifthe return Is delayed beyond the relevant assossment yeer and the amount of unpald tax exceeds RR, 3,000, he adds, return is not filed even by end of relevant Assessment Year Ityou do nat fle your tax return ovon by 34st March of the relevant assessment year (ie. the year immediately efter the financial year for which the retum is to be fled) but no taxes are due, a penalty of Rs, §,000 can be lovied by the tax authorities if you are unable to provide a reasonable cause for the delay, Kumar adds. READMORE: TOSdoducton|ToxFiing| Pu ly31 [TR [income art cas Tx Ack Comments ‘ad Your Comments ‘Other Tnes Grovpnavn ates ERAS es Hotenthe eb 214 | Bey sus Pera etking totus aearso in Tens! Uk ranacn Rann Pac ay outback! Senay Cofix | Daekinee Gong 2010 Benak Can Ca Us ARO bictlecrcrmietimes ndatimes.comyeettvaxhy-you-should-e-your-taxrolrn-by-juy-SHareleshowiS3376306 cms ptpege=1 22