Income tax for financial year 2013-14 has to be paid by every citizen whose income is over ₨ 2 lakh and anyone having taxable income of over Rs. 5 lakh would have to file the returns online. But the very common question is what if I miss the 31st July deadline? The good news for you is that even if you have missed the 31st July 2014 deadline to file your tax return for 2013-14, you can do so till 31st March 2015, without any problems at all.
The only catch is that if you do not file your return by 31st July, you may not be able to claim your tax refunds. That happens because your tax saving investment of the assessment year would not be able to reflect in your Form 16 and you would not have time to submit proof of investment in time. This way, you may even not call for a refund as well.
Implications of filing IT return after due date
- If you fail to file your return by due date, you would have to pay an interest @ 1% on the balance tax from the due date up to the actual date on which you are filing the return.
- In case, you fail to file the return even by 31st March of the extended year, you would be levied a penalty of Rs. 5,000. This holds true for all Indian citizens as well as NRIs.
- If you have missed the deadline of 31st July, you won’t be able to apply for rectifications in your return, if any.
- You won’t be able to carry forward losses which you would have otherwise shown under the headings, ‘Business Losses’ and ‘Capital Gains’.
What to keep in mind if filing return after 31st July deadline?
As we already know that there could be no possible rectifications, if you have made any mistake while filing return after 31st July, we should pay extra attention while filling the return. You should make sure that there is no possible error in the information that you provide in your IT return. Make sure that you have copies of Form-16, bank statements, banking details and 80G receipts handy with you as you may need it anytime.
Why is IT filing important?
There are innumerable benefits of Income Tax returns. If you have to travel abroad, the concerned embassy would ask you for your IT returns of the last three years. Likewise, it is required as a compulsory document when you are availing a loan of any kind. Also, it is a must for people who want to become future entrepreneurs.
Nobody wants to delay their income tax returns. However, it may happen with any one of us and that’s completely understandable. Income Tax department has made things easy for people so much so that you can file your returns anytime after the due date and also avail online facilities and save your time and energy to file IT returns in time.