Sunday, 17 July 2011

Consequences of not filing ITR in time

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.

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  1. Hi,
    I have paid the tax through my netbanking site on 30th July 2011(today). I did not recieve any CIN no. that I can furnish in my returns for e-filing. When I contacted back, they said that it will take at least 48 hours to give me those details. So, by the time I get the details (1st August), the last date for filing is already over. So, I would like to know that, since now I don't have any tax liability, can I file returns *online* after 31st July 2011? Please help.
    Or do you suggest that I should file the online returns today itself without the self-assessment tax details that I paid today and file a revised return after 31st July?

  2. You can file return online upto 31.3.2011. But only thing is that you could not submit a revised return, if you file after 31.07.2011

  3. [...] be delayed. So keep all the above instructions while e-filing your income tax returns.Related postsConsequences of not filing ITR in timeAdvantages of e-filing Income Tax ReturnHow to e-file Income Tax Return Yourself    [...]

  4. Hi,
    I have ITR before the due date but by mistake missed to mention capital loss in ITR and filed the ITR with Salary income alone. I would like seek clarification as to can i revise my ITR now and claim the capital loss in revised ITR.
    Devesh Wadhwa

  5. You can revise your ITR after getting your acknowledgement number. Just do all process again, but mention about the revised return in the place provided and acknowledgement Number.

  6. [...] How to file income tax return, if the last date of filing income tax return is over and you are not filed your return in time. The last date of filing personal income tax return is 31st July every year. On or before 31st July, you should submit previous year’s income tax return. For example on or before 31st July, 2011 you had to submit the income tax return for the financial year 2010-11. In this case the financial year 2010-11 is known as previous year and the year 2011-12 is assessment year. Every 31st July you have to file the income tax return of the previous year. See the consequences of not filing IT return in time [...]

  7. [...] person is a signing authority in any account outside India must submit their income tax return in ITR-2, ITR-3 or ITR-4 should submit their Income Tax Return through [...]