There are quite a lot of consequences if you do not file your Income Tax Return on time, though the last date to file Income Tax Return has extended from 31st July 2018 to 31st August 2018, but you must file your Income Tax Return as soon as possible.
Here are some of the consequences of late filing of ITR
Filing Income tax returns within the last date is mandatory for taxpayers having taxable income exceeding the basic exemption limit. Consequences of filing the Income Tax Return after due date will include additional interest payments, penalties or fees for late filing. Moreover, whether the taxpayer has sustained losses under the head profits and gains of business or profession or capital gains, the opportunity to carry forward such losses will be lost.
What about belated Income Tax Returns
The Income Tax Act provides a provision to the taxpayer to file his/her return within the specified date. In case someone fails to file ITR within this date the taxpayer can file his ITR before the end of the relevant Financial Year. This means that instead of the regular 31 July date, the returns may be filed as belated returns by March 31 of the subsequent financial year. Belated returns relating to FY 2016-17 cannot be revised to correct any errors or omissions. Further, a penalty of Rs 5,000 could be levied at the discretion of the tax authorities.
However, the taxpayers do not have this provision to file their belated return before a certain period of time but will invite the penalty for late filing of ITR.
- If the taxpayer’s annual income is upto Rs.5Lakh then in that case the taxpayer will have to pay a tax penalty of Rs.1000.
If the taxpayer’s annual income is above Rs. 5Lakh then the taxpayer will have to pay a penalty of Rs.5000 if he/she files the ITR after 31st August 2018 or if the taxpayer files ITR after 31st December 2018, then they will have to pay a penalty of Rs.10,000.