The government today extended the dealdine for filing Income tax Return to August 5 following complaints by several users of a dysfunctional tax filing system on the website of the Income tax department for the past two days. The government was initially rigid on the deadline, but finally relented owing to huge number of complaints being faced by taxpayers on the system. The deadline was to end on July 31.
The government had on Sunday made it clear that there was no proposal in consideration for extending the July 31 deadline and advised taxpayers to comply with the date come what may. While today's announcement of extending the deadline by five days should ease some panic, it is important to know what happens if you miss the deadline for filing Income tax Returns.
Here is what you need to know:
Filing ITR to continue post August 5
Yes, you can still file your Income Tax Return even if you miss the August 5 deadline. There is a provision of filing belated returns, i.e., returns filled after the deadline has passed. The date to remember here is March 31, 2018. This is the last date by when you can file your belated returns and you can even revise your belated return from the 2016-17 financial year. However, there are certain benefits that you stand to lose out on.
How to file a belated return
There isn’t any difference in the process of filing a belated return and filing ITR by the due date. However, you will need to select "Return filed under section 139(4)" in the drop down menu in the relevant box in the form. The difference will be that while filing a belated return for FY16-17, you can fill the applicable ITRs as notified for this FY only and not for any previous or later FY.
Late fee for delayed ITR filing
There is no penalty which will be applicable for belated filing of income tax return. Though the government has introduced a maximum late fee of Rs 10,000 for delayed filing of income tax return by individuals in the budget this year, it will only be applicable from FY 2017-18. This means that the late fee will apply with effect from April 1, 2018 and will not apply for returns filed for FY2016-17, the deadline for which ends on August 5.
Impact of late ITR filing
While there will be no fee imposed for late filing of income tax return, you will be charged a penalty if you have any unpaid tax liability. Late filing of return will cost you penal interest on your unpaid tax. This will be calculated from the due date of filing the return till the actual date of filing. While there is no worry for those who do not have any unpaid tax liability, there could be trouble if the Income Tax authorities raises a demand for additional tax in the course of assessing your returns. In such a case, penalty will be imposed on that tax as well as the additional tax.
Errors, Revisions and Verification
As per process, once the ITR is filed, it is processed by the CPC of the Income Tax Department. It is possible to revise your ITR if you realise that you missed reporting some income or missed to avail of a deduction. You can file a revised return in such cases.
Among the most important jobs while filing your ITR is to get your details verified. You have 120 days to get your returns verified from the date of filing returns.