What if you could not file your income tax return in time? This may be possible by so many reasons. If you are a salaried person you should file your return on or before 31st July every year. If you are a business person who needs auditing, you could extend up to the end of September. But in some cases you might have forgotten to file the Income tax return, or by negligence you avoid to file return or any other reason. Let us discuss the consequences of not filing income tax return within the due date.
File return with penalty.
The income tax rule allows you to file income tax return within the end of march next year and if you late more than that the Income Tax officer may charge you a penalty of Rs. 5000 u/s 271F.
You miss the chance of revised return
Your income tax return may have any mistake or omission. If you file the income tax return within the specified time (end of July and September as per the case) you can file revised return to correct the mistake any time within two years of time.
Carry forward of losses is not allowed.
If you could not file the return in time you could not carry forward some losses such as capital loss or business loss. Unless you are allowed to carry forward such losses for the next 8 years with profit with the same nature.
Loss of interest
If you could not file the income tax return in time you have to pay an interest at the rate of 12% per year for any outstanding tax payable after the due date and you will lose interest for any refund of excess tax paid.
I f you have no any outstanding tax liability to be paid and should not get any tax refund or have not any loss to carry forward to next year, you may not have any adverse effect, if not file the return within the due date. But you miss the chance of revise your return, if there is any mistake or any correction is needed.
So we strongly advise all tax payers to submit their income tax return on or before the due date. You can file income tax return manually yourself or with the help of any professional. You can e-file the return through the website of income tax department free of cost.