The clock is ticking and the last date to file Income Tax Return for the Financial Year 2017-18 is just next door. 31st August 2018, the extended due date to file ITR is here and if you haven’t filed your ITR yet, then you can land up in some serious trouble.
As many of us know, it is important for every individual who has income in India to pay Income Tax and file ITR for the same, but if you are not planning to file your ITR by the due date, then we would suggest you should consider filing it by 31st August 2018.
The major reason to file Income Tax Return on time is, it will save you from paying hefty penalty for late filing. In case you miss to file your ITR by 31st August 2018, you will have to pay heavy tax penalty of Rs. 1000, Rs. 5000 and Rs. 10,000 depending on the degree of delay. It was very convenient for the taxpayer to file belated returns, as there was no late fee for filing of belated returns, but from Financial Year 2017-18, that is sane as Assessment Year 2018-19 a taxpayer is required to pay tax penalty for the late filing of the ITR, as per the new section 234F of the Income Tax Act, 1961.
Furthermore, all the taxpayer must understand that, if you have any unpaid tax liability then some penal interest would be levied on the tax amount you are liable to pay, while filing the belated Income Tax Return. In case you don’t have any payable tax then you are not required to pay this interest, just for the belated filing of Inocme Tax Return for the Financial Year 2017-18.
Filing of ITR is of dire importance and the extension of the last date from 31st July 2018 to 31st August 2018, was a major step to enable taxpayers to file their ITR without paying heavy penalty.