Can't file returns by July 31? Don't worry

You have till March 31, 2011, but delay in tax payment will cost you
The last date to file your income is just two days away – July 31 – and you are anxious because you are not in a position to file your returns by then. Relax, there is no need to be unduly worried.
As www.incometaxindia.gov.in, the website of the income tax department points out, the return "may be furnished at any time before the expiry of two years from the end of the financial year in which the income was earned".
Simply put, this means that for income earned during the financial year 2008-09 (ie from April 1 2008 to March 31, 2009), returns can be filed any time before March 31, 2011.
Salaried individuals, whose tax has already been deducted at source by the companies they work for and there is no further income tax to be paid, need not fret over missing the July 31 deadline. They can easily file their return after, without having to pay anything extra. This applies to anybody who has already met his or her tax liabilities.
However, individuals should take note of section 271(F) of the Income Tax Act, which allows the assessing officer of the income tax department to levy a fine of Rs5,000 if the returns are filed after March 31, 2010.
While a delay in filing returns is cost-free till a certain period, late payment of taxes comes at a cost. "Paying the tax late does come with a cost attached to it. In terms of repercussions, a simple interest of 1% per month will be levied on any tax due,"