Have you not yet filed your Income Tax Returns (ITR) for the financial year 2018-19? It is important to note that you can still file it today as 31st March is the deadline for filing delayed ITR. Several taxpayers think their obligations are fulfilled once they have paid their taxes. However, filing of income tax return is equally important and the government reserves the right to take legal action against you over the failure to file ITR.
Penalty on filing delayed Income Tax Return (ITR)
Effective from the financial year 2017-18, a late fee, of a maximum penalty of Rs 10,000, will be fined for filing your returns after the due date i.e. 31st August 2018 under section 234F.
A penalty of Rs 5,000 will be levied if you file your ITR after the due date as stated above. Similarly, for returns filed post 31st December 2018, the penalty levied will be increased to a maximum Rs. 10,000.
A notification issued by the income tax department provides relief to small taxpayers, according to which, if your total income does not exceed Rs 5 lakh, the maximum penalty levied for delay will be Rs 1,000.
Documents required to file delayed Income Tax Return
The e-filing portal asks you to fill in a number of details, that are crucial to claim the deductions in your salary. You must keep the following documents ready
- PAN card
- Aadhaar card
- Bank account details - (account number, branch name, IFSC code)
- Form 16
- Investments details
How to file delayed Income Tax Return
Filing your Income Tax Return (ITR) is no rocket science and can be done in just a few minutes by following the below mentioned steps
1. Register/ login to the e-filing portal of the Income Tax Department - incometaxindiaefiling.gov.in
2. Enter your personal details
3. Enter the details of your salary and TDS
4. Enter the required details to claim the deduction
5. Enter the details of taxes paid. You can also add these details by uploading Form 26AS
6. Provide your bank account details
7. e-file the Income Tax Return
Note - You may upload your Form 16 if the portal provides you with an option. If not, you can manually fill in the details from the Form 16, as provided by your employer.
Once your e-filing is complete, a notification on your screen will display the amount you are entitled to receive as refund.
The next step after e-filing delayed Income Tax Return
Verification of your Income Tax Return (ITR) is an important step. You will not be able to claim any refunds even after e-filing your ITR, if you do not e-verify it.
You can e-verify your ITR in three ways -
- Via net banking
- Via Aadhaar OTP
- Via EVC on the Income Tax Department website
Follow these steps to e-verify your Income Tax Return
1. Login to incometaxindiaefiling.gov.in with your credentials
2. Select the ‘View Returns/Forms’ option to see e-filed tax returns
3. Select the option ‘Click here to view your returns pending for e-verification’
4. Select the option ‘e-verify’
5. When you click on e-verify, a list of modes through which you can generate an EVC will be displayed
6. Enter the EVC and submit after you have successfully generated the EVC through the desired mode
A confirmation message with a transaction ID and EVC code will be displayed. You can click on the green button to download the attachment for your records
Consequences of not filing Income Tax Return in time
Taxpayers may face consequences if they do not file their ITR within the due date, few of which are listed below
Noticed some deductions in your salary? You must file your return before the due date in case you are entitled to receive some amount as refund from the government. This amount is for the excess taxes paid
Interest on delay in filing return
It is important to note that ITR cannot be filed unless your taxes are paid. Apart from the penalty for late filing, 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 interest will begin from the date falling immediately after the due date i.e. 31 August 2018 for AY 2018-19. So, the longer you wait the more you pay.
Unable to set off losses
Losses incurred (other than house property loss) are not allowed to be carried forward to subsequent years. You cannot set off these losses against future gains, if the return has not been filed within the due date. However, if there are losses under house property, carry forward of losses is permitted.
Benefits of filing ITR on time
Filing your ITR on time can benefit you in more than one way:
- Filing the ITR on time makes it easy for you to apply for a house loan, or a vehicle loan
- You should file your Income Tax Return on time to receive your refund, due from the Income Tax Department, as early as possible
- Not many people are aware that an ITR can be used as a proof of your income and address, which is a mandate when you apply for a loan or visa
- File your ITR in time for quick visa processing as most embassies and consulates require you to furnish copies of your tax returns for the past couple of years at the time of the visa application
- If you file the income tax return (ITR) within the due date, you will be able to carry forward losses to subsequent years
- File your ITR to avoid falling prey to legal proceedings for a term starting from 3 months to 2 years along with a fine. The period may even extend to 7 years if the taxes you owe exceeds Rs. 25 lakh