If you have not yet filed your Income Tax Return,or ITR, then their is a big relief. The tax department recently has extended the last date to file ITR(Income tax return).
The due date for filing ITR for financial year 2017-2018 or assessment year 2018-2019 has been extended to 31st August from 31st july.
“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 Returnsfrom 31st July, 2018 to 31st August, 2018 in respect of the said categories of taxpayers,” a finance ministry statement said.
Here are 5 things you need to know before last date to file income tax return(ITR)
- If you fail to file income tax returns before the due date i.e 31st august you still can file the ITR for assessment year 2018-2019 till 31st march but , penalty for late fee will be levied on you at the time of filing income tax returns.
As per the new law from this year, Individuals will have to pay late fee after last date to file income tax return
- Rs 5000 if tax is filed after due date of 31st july but on before 31st december of that assessment year (in this case 31st december 2018)
- Rs 10,000 if tax is filed after 31st december but on or before 31st march of the relevant assessment year (in this case from 1st january to 31st march 2019)
But, there is relief to small taxpayer, IT Department has stated if your total income does not exceeds 5 lakh , then maximum penalty of Rs 1000 will be levied on delay of ITR filing.
- There will be no late filing fee will be levied as per the mentioned in section 234F of the income tax return filed after the due date if gross total income does not exceeds the basic exemption limit.
“Gross total income as mentioned in section 139(1) refers to the total income before taking into account the tax exemptions available on the incomes specified under section 10(38) and deductions under section 80C to 80U of the I-T Act,
However, if you are ordinary resident individual with income from foreign asset but your income does not exceeds basic exemption limit , then you have to pay penalty,if you don’t file it at income tax filing last date(i.e extended now to 31st august 2018)
- Apart from penalty for late filing of ITR, if you make a mistake in filing of ITR for FY 2017-2018 then you would have time till 31st march 2019 to file your revised income tax return.
Earlier there was allowed to file revised returns up to 2 years from the financial year for which return was filed. However, from now on, upto 1 year from the financial year are allowed to file the revised return.
For the financial year 31st march 2018, now you need to file revised return till 31st march 2019.
- Till last date to file income tax return if you don’t file, then you can not carry forward your losses(other than house property loss) to be set off to subsequent years against future capital gain.
- Apart from the penalty for late filing of ITR, an interest under section 234A at 1% per month or part thereof will be charged till the date of payment of taxes.
The calculation of the penalty will start from the date falling immediately after the due date i.e. 31st August 2018. So, longer you wait to pay your taxes more to pay as interest.
Taxpayers must pay taxes and file the return on or before last date to file ITR . Even if in case the taxpayer misses the due date to file his return, he can file a belated return.
A belated return can be filed either by the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.
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 but will have to pay penalty fee as well accordingly.