What happens if you miss ITR filing deadline

CS Karan B. Khattri , Last updated: 01 September 2018  
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An INCOME TAX RETURN is the tax form or forms used to file income tax with the Income Tax Department. The tax returns usually in a predefined worksheet format where the income figures used to calculate the tax liability are written into the documents themselves.

The due date for filing of Income Tax Returns for Assessment Year 2018-19 is 31.07.2018 for certain categories of taxpayers. Upon consideration of the matter, the Central Board of Direct Taxes (CBDT) extends the ‘due date' for filing of Income Tax Returns from 31st July, 2018 to 31st August, 2018 in respect of the said categories of taxpayers.

Central Board of Direct Taxes (CBDT) hereby further extends the 'Due Date' for furnishing Income Tax Returns from 31st August, 2018 to 15th September, 2018 for all Income Tax assessees in the State of Kerala, who were liable to file their Income Tax Returns by 31st August, 2018.

DUE DATE OF FILING INCOME TAX RETURN FOR FY 2017-18 (Normal)

  • 31st July 2018 for Individuals (Audit is not required)
  • 30th September, 2018 for Businesses (Audit is Mandatory)

WHAT HAPPENS IF YOU MISS 31ST AUGUST, 2018 DEADLINE:

Interest

If you don't file your Income Tax Return on time when you have an outstanding tax liability, the I-T department can penalise you by charging interest under section 234A.

The following points must be kept in mind while calculating interest:

  • Interest is charged @ 1% on the outstanding tax amount.
  • Interest will be payable from the 1st day after the due date of filing the return till the date of actual filing of the return.
  • The nature of the interest is simple interest.
  • Any fraction of a month shall be considered as a full month for calculating interest.
  • When calculating interest, the amount of taxes due shall be rounded off to the multiple of 100 and ignore any fraction of 100.

Penalty on Late Filing of ITR

Starting from April 1, if you file your ITR post the deadline of July 31, 2018 (unless the tax department extends it), you will be liable to pay a maximum penalty of Rs.10,000.

W.e.f. assessment year 2018-19, if assessee failed to furnish return of income within due date as prescribed under section 139(1) then as per section 234F, he will be required to penalty of:

  • Rs. 5000 if return is furnished on or before 31 December of assessment year.
  • Rs. 10,000 in any other case.
  • Total income of the person does not exceeds Rs. 5 lakh then Rs. 1000. 

PENALTY ON LATE FILING OF ITR

Filing Date Total Income Below Rs. 5,00,000/- Total Income Above Rs 5,00,000/-
Up to 31st August,  2018 NIL NIL
Up to 31st December, 2018 Rs 1,000 Rs 5,000
Up to 31st March, 2019 Rs 1,000 Rs 10,000

Delayed Refunds

In case you're entitled to receiving a refund from the government for excess taxes paid, you must file your return before the due date to receive the refund at the earliest. So, in case an individual is awaiting a tax refund, late filing of ITR will result in them having to wait even longer for the transfer of refund.

Belated Return

The process of filing a belated return is the same as filing the original return on or before the due date i.e 31st July, 2018 (31st, August, 2018). The main difference would be that while filling the ITR form, you would have to select "Return filed under section 139(4)" in the drop-down menu in the relevant box in the form.

For the current assessment year, a belated return can be filed any time before 31st March 2019, if the assessee fails to file his return on or before 31st August 2018.

Carried forward of Losses:

According to the Income Tax Act, losses under 'house property' can be carried forward even if the return is not filed on time. However, losses under other heads of income, such as business and share trading, can be carried forward only if the return is filed by the due date.

The author can also be reached at rocguru.com@gmail.com 


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Published by

CS Karan B. Khattri
(Practicing Company Secretary and Advocate)
Category Income Tax   Report

11 Likes   86414 Views

Comments

23 September 2018 FAHEEM AKRAM

Plzzz tell me if I had previous year tax audit but this year Turnover is 44 Lac and profit is 4% so what to do to skip tax audit?


24 September 2018  CS Karan B. Khattri
Hi Faheem, As per my understanding you have to audit your account if your profit is less then 8%.
  

17 September 2018 goods service

if i filed belated return but didn't pay late fee ?


24 September 2018  CS Karan B. Khattri
You can can't proceed without payment of late fees.
  

09 September 2018 Manoj Pandit

what happens to sec 234F if the return is filled u/s 142(1).?! and Is the AO justified in levying fine u/s 234f if he assesses income in excess of basic exemption limit u/s 143 or 144 or 147.?!


04 September 2018 Sudhir Goyal

Also not allowed to revised your ITR


03 September 2018 Priyabrata Sahu

income less than 2.5L no late fees till 31-dec-2018


04 September 2018  CS Karan B. Khattri
Hi Priyabrata, No its applicable all till 31st March, 2019. After 31st March, 2019, you can't file ITR for the FY 2017-18.
  

02 September 2018 Sameer Kulkarni

Hello Sir, I received a salary of 2.92 Lacs and I don't have any savings, my tax liability is NIL after 87A Rebate am i supposed to pay penalty u/s 234F? Please Help


03 September 2018  CS Karan B. Khattri
Hi Sameer, Not required to pay.
  

04 September 2018  anuj maheshwari
yes, person whose gross total income is below 250000 are only not required to pay penalty
  

04 September 2018  CS Karan B. Khattri
Thanks Anuj ji for your contribution.
  

07 September 2018  Darshan Kamat
I think you'll have to pay RS. 1000 even if your income does not exceed basic exemption limit
  

02 September 2018 vs.krusna@gmail.com

31 st august must be permanent due date. one gets form 16 / 16A after 20th june. finding defect and getting rectified especially by banks is just mind boggling exercise. so give just 40 days from receipt of form 16/ 16A is just not enough.


03 September 2018  CS Karan B. Khattri
Hi, I am unable to understand your issue. Could you please explain the issue.
  

02 September 2018 contact.msri96@gmail.com

hi is it possible to file belated return for ay 17-18, in IT website its shown error message the due date of filing return is over


03 September 2018  CS Karan B. Khattri
No. you can't file now.
  

02 September 2018 pandurangan L

What happens when the assessed is entitled to refund having in come below the threshold limit but filing belatedly Is he liable to pay late fee?


03 September 2018  CS Karan B. Khattri
Hi Pandurangan, I think not but please check it practically.
  

02 September 2018 Manan Mittal

Sir what if we have filed a wrong return and want to file a revised return, will still the penalty u/s 234F or u/s 234A ????


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