Even though the last date of filing the income tax return for assessment year 17-18 has passed after being extended to 05.08.17 from 31.07.17, it is important to file the income tax return for the said assessment year as soon as possible, especially if you have deposited cash of Rs. 2 lacs or above during the demonetisation period as the reporting of all such cash deposites have been made mandatory by the Income Tax Department.
With the launched of operation Clean Money by the Income Tax Department, taxpayers may be asked to explain the details of cash deposits made by them.
So if you are amongst one of the numerous people who failed to file their return before due date, you can still file a belated return. Keep in mind that the belated return can be filed only before the end of the relevant assessment year i.e. for the given assessment year it can only be filed up to 31.03.18.
A belated return can be filed in the same manner as an ordinary return filed before the due date. However, the assessees will have to bear the following consequences for not filing in time:
Interest
An interest at 1% p.m. or part thereof will be charged till the date of actual payment of taxes, if such taxes are not paid in time.
It is important to note that no penal interest would be levied if taxes for the assessment year are paid in time even if the return is not filed before due date.
Penalty
A penalty of Rs. 5000 may also be imposed on delayed filing of return.
From financial year 17-18 onwards the following penalties shall be applicable-
Rs 1000: If the income of the assessee is upto Rs. 5 lacs.
Rs 5000: If the return is filed after due date but before 31st December.
Rs. 10000: If return is filed after 31st December.
No Interest on Income Tax Refunds
Interest on refund will not be paid to the assessee for the period of delay if any refund is due.
No Set Off of Losses
Losses other than loss from house property incurred by the assessee will not be permitted to be set off against the future incomes in the subsequent years.
It is therefore recommended to always file the return before the due date.
With the launched of operation Clean Money by the Income Tax Department, taxpayers may be asked to explain the details of cash deposits made by them.
So if you are amongst one of the numerous people who failed to file their return before due date, you can still file a belated return. Keep in mind that the belated return can be filed only before the end of the relevant assessment year i.e. for the given assessment year it can only be filed up to 31.03.18.
A belated return can be filed in the same manner as an ordinary return filed before the due date. However, the assessees will have to bear the following consequences for not filing in time:
Interest
An interest at 1% p.m. or part thereof will be charged till the date of actual payment of taxes, if such taxes are not paid in time.
It is important to note that no penal interest would be levied if taxes for the assessment year are paid in time even if the return is not filed before due date.
Penalty
A penalty of Rs. 5000 may also be imposed on delayed filing of return.
From financial year 17-18 onwards the following penalties shall be applicable-
Rs 1000: If the income of the assessee is upto Rs. 5 lacs.
Rs 5000: If the return is filed after due date but before 31st December.
Rs. 10000: If return is filed after 31st December.
No Interest on Income Tax Refunds
Interest on refund will not be paid to the assessee for the period of delay if any refund is due.
No Set Off of Losses
Losses other than loss from house property incurred by the assessee will not be permitted to be set off against the future incomes in the subsequent years.
It is therefore recommended to always file the return before the due date.
