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August 31 is round the corner and the deadline to file income tax returns is here. While there are options to file the income tax returns after the stipulated date, there are several concessions that an individual assessee has to forego.
If you are in the taxable bracket, you must file income tax returns. The Income Tax Department has been reminding taxpayers to file income tax returns for assessment year 2018-19. In order to avoid last minute rush, it is best if you file income tax returns well before July 31. In case you miss this deadline, you can still file your income tax returns but in that case, it may invite a penalty of up to Rs. 10,000. Besides this, a delay in filing of income tax returns also makes you liable to pay interest.
Further, income tax department put obligation to file return online for those person, whose Income
However, income tax department has given relaxation to tax payer of age of 80 years or more from online filing subject to certain conditions
After filing return of income online (without digital signature), you have to verify your return using any of the option mentioned below:-
Here are few things that will happen if you do not file income tax returns on time
A three-tier fee system has been introduced for not filing income tax return within due date. If return is filed beyond due date but before December 31, then fees payable will be Rs. 5,000 whereas in other cases it will be Rs. 10,000. However, in case of taxpayers whose total income does not exceed Rs. 5, 00,000, the fees payable shall be restricted to Rs. 1,000.
An unpaid debt is just like an unpaid debt to anyone else, and it will appear on your credit report. People don’t realize that your credit report reflects your tax liens as much as any other outstanding debt. We won’t even pretend that it could be considered good debt.
It makes sense when you think about it. If you owe the tax money, the agency is not going to hand over any until you pay.
It won’t necessarily be you who is asked to meet with the agency: A third party with information relevant to your case, such as a record keeper from a financial institution, could be summoned instead. It is simply gathering info, you’ll be informed of the third-party summons, but if it’s in reference to money it’s already clear you owe, you might not even find out.
You won’t be able to carry forward your losses and set them off against income next year. The only exception is house property.
People who might declare bankruptcy are the people who couldn’t pay their taxes because they couldn’t afford to pay their mortgage or expenses and get caught in a bit of a bind.
Remember that bankruptcy isn’t magic: While in certain cases, a tax debt can be discharged, if it has turned into a tax lien, it might not be erased.
In case you fail to file your return of income, the department can presume your income and proceed with computation of your tax liability in the manner as deem fit by the department. But, a notice for the same will be served upon you
When income tax return is not filed within the due date, interest at the rate of 1 per cent per month or part of the month is levied up to the date of filing the same. The said interest is payable on tax payable after deducting the TDS, TCS, advance tax and other reliefs/ tax credits available under the law.
The other problems which you might face for not filing your income tax return may out-rise from situations where your filed ITR becomes a documentary need for the process. Like for obtaining loan or any credit facility from financial institutions, for getting your visa done or for claiming refund on excess taxes paid you need to first file the income tax return.
If you don’t file the return by the due date (July 31) then it is treated as a belated return. But there is a deadline even for filing a belated return. According to the Income Tax Act, for returns pertaining to any financial year the last date for late return would be the end of the relevant assessment year.
“Let’s say you are filing your ITR and you end up making a mistake. Under the changed rules, you only have time till March 2019 to make the change. Earlier, taxpayers had a 2-year long window to revise and resubmit an erroneous ITR, which has now been decreased to one year from the end of the financial year. “Therefore, the earlier you file, the longer would be the window available with you for revising your returns to rectify errors if any.
If you have any unpaid tax liability, filing your return after the due date would result in levy of penal interest @ 1% per month from the due date of filing the return till the actual date of filing. This would be a heavy and avoidable payout. What is more, tax authorities can initiate prosecution if the return is delayed beyond the relevant assessment year and the amount of unpaid tax exceeds Rs. 3,000.
Once the return is filed and verification of the same is duly completed, the Central Processing Centre, Bangalore, of the Income Tax Department processes the income tax return. It is only then that the tax liability or refund of taxpayer is determined. Thus, in case the taxpayer is claiming a refund, delayed filing of income tax return will result into a delayed receipt of the tax refund.