Income tax return filing is one time-taking task that needs to be done by every salaried person. There is a certain timeline within which you need to file your ITR. After which you will have pay penalty. It is not just a penalty that is imposed on you but there as other consequences as well. Here are some insights on the late filing and related consequences;
ITR LATE FILING PENALTY UNDER SECTION 234F
Under the section 234F of Income Tax Act, filing your ITR late can make you liable for a penalty of Rs. 10000 at maximum. The deadline for the last financial year 2017-2018 was August 31, 2018. If you had filed your ITR before the deadline then it is fine, otherwise, you are due for a fine.
There are certain rules for the penalty; if you happen to file your ITR by December 2018, you will be fined Rs. 5000. For returns filed after December, the penalty remains full at Rs. 10000.
There is another condition as stated by the Income Tax department if your total income is less than Rs. 5 lakhs, you will be fined with Rs. 1000 only.
REDUCTION IN TIME MARGIN FOR REVISIONS TO BE MADE
If you happen to make a mistake while filing your ITR, then the maximum permissible timeline to do the corrections is till March 2019 for the financial Year 2017-18. Earlier this margin window was long of approximately two years to make all the corrections and revisions. This window has now been reduced to one year.
This means, the earlier you file the ITR, the more time you would have to make corrections and resubmission.
If by any chance you happen not to file the return on or before the due date, the rate of 1% will be charged every month, or part of the month, on the amount of tax remaining unpaid as per section 234A.
Note: In order to file ITR, you need to pay the taxes before.
The penalty is calculated immediately after the due date is passed. The more delay you make, the more interest you pay.
NO PERMISSION TO CARRY FORWARD THE LOSSES
If due to any reason, you have incurred losses on the capital gains or in business or any other form, it becomes necessary to file the income tax return within the due date. Since carrying forward of the losses is not allowed, you will be deprived of carrying forward your losses for set off against your income in the next years.
Note: The following rule does not apply on losses from house property.
DELAYED FUNDS FROM GOVERNMENT
If you are entitled to receive any funds or refund from the government for extra taxes paid, you are required to file the taxes before the due date in order to receive those funds or refund at the earliest.