The last date of filing Income Tax Returns is 31st July 2018 and it is certainly not too far. Well, if you are thinking that there won’t be any problem if you cross the deadline of filing ITR, then you are sadly mistaken. You must know that even if you have paid all your taxes and there is no penalty for delayed filing this year, you would still lose out on certain benefits if you do not file your income tax return by the due date that is 31st July 2018.
I file ITR on Time
If you delay the filing of returns, you may receive a letter from the Income Tax Department and along with that you will lose a lot of benefits as well.
Here are the benefits that you may lose, if you don’t file your IT return on time: –
- Loss in Interest in refunds
If you claim any ITR refund for the advance tax or TDS, that you have paid, you can lose the interest paid by the Income Tax Department on the refund. Generally, interest is computed from the 1st April of the Assessment Year, till the date you are granted refund. If you file late returns, then the interest will be computed from the actual date of filing return till the date refund is granted. This certainly means that you would be losing interest, which you could have got if you would have filed your returns on time. Not just this, if you file returns just after a day of the due date, then also you will lose interest for at least 4months.
Cannot carry forward losses
If you did not file a return on time, then you cannot carry forward losses except for the loss from house property. Losses under heads of income like Income from business and profession including speculation business, capital gains, and income from other sources will not be carried forward, if the taxpayer didn’t file returns on time.
- Late return where the tax remains unpaid
If you have any tax liability and you file your returns late, then you will be levied a penalty at the rate of 1% per month from the due date of filing returns to the actual date of ITR filing.
- If you don’t file return by the end of the relevant assessment year
In case you have not filed your tax return even by 31st March of the relevant assessment year, but your none of the taxes are due, then a penalty of Rs. 5,000 can be levied by the tax authorities if you are unable to present a reasonable cause for the delay.
Well, as we just mentioned Filing ITR on time is way more beneficial than filing it after the due date. So, what are you waiting for, File your Income Tax Returns now.