As the process of filing income tax returns for the financial year 2018-19 has started, hence every taxpayer needs to e-file their returns before the last date of ITR filing. Although, the Tax department has already notified the ITR Forms from ITR 1 to ITR 7 except ITR-6 which will be available shortly. Amidst, every tax preparer is liable to fill these forms if they fall under any of the particular categories and depending on the type of income. However, the last date of filing returns is July 31 & it is not too far away. Therefore, it is important for individuals to ensure that they avoid the late filing of returns to evade any consequences by the statutory authority.
The tax authority has a certain set of regulations and provisions which further comprises of consequences and charges in lieu of late efiling of itr. Along with efiling of income tax return on time, it is equally important that the filing should be accurate and complete. In light of the above, this article will help assesses to look at the consequences of late filing and what circumstances they can face at the end of the due date-
What happens if you file your returns late?
• Firstly, if any individual file late returns then he has to pay a late penalty and might even face legal action.
• If a taxpayer misses the deadline, the penalty amount until December 31 will be Rs 5,000.
• In case you missed December 31 deadline, and files return between January 1 and March 31, then one has to pay a penalty amount of Rs 10,000.
• Those who will fail to file Income Tax return might face prosecution under section 276CC.
• 1% interest rate per month will be charged on the unpaid amount.
• Apart from this, the defaulters might even face prosecution.
• If taxpayers are having a loss in capital gains or business and fail to pay tax on time, they won’t be permitted to carry forward the loss. Whereas, only the loss in house property is allowed to be forwarded,”
What is an income tax return?
Income tax is a tax imposed and collected by the central government on the income of an individual. The income tax is calculated at specified rates on the total income of a person and paid directly to the central government. Thereon, if you need any information regarding efiling ITR, we provide professional Tax experts who look after your every query. For more info visit us at www.allindiaitr.com.