Belated income tax return : There’s still a chance for filing your income tax return.
If you missed the extended income tax return filing deadline, there’s still a chance for filing your income tax return. However, there are certain points you need to understand before you make up your mind to avail this last chance. Returns filed after the due date are referred to as ‘Belated Returns’.
Belated income tax return
If an individual fails to file the income tax return by the due date, then as per section 139(4) of the income tax he can file a belated return.
Deadline to file belated ITR A belated return can be filed at any time before the end of the relevant assessment year or before completion of assessment, whichever is earlier.
This means that you can file belated return for FY 2017-18 by March 31, 2019 i.e. before the end of the current assessment year (AY2018-19).
Revision of belated tax returns I-T return for the FY 2016-17 and onwards filed under section 139(4), which is belated tax return can be revised.
Penalty The penalty for filing income tax return after due date is applicable from FY 2017-18. The government has introduced a maximum late fee of Rs 10,000 for delayed filing of income tax return by individuals. However, this fee is applicable with effect from April 1, 2018 and will not apply for returns filed for FY 2017-18 for within the deadline.
You stand to lose certain benefits for not adhering to the income tax filing deadline
• Cannot carry forward loss : If you file a belated return you cannot carry forward losses (except loss from house property). Losses under the following heads of income: Income from business and profession including speculation business, capital gains, and income from other sources cannot be carried forward in case a belated return is filed by the tax payer.
• Levy of interest under section : If you have any unpaid tax liability, filing your return after the due date would result in a levy of penal interest on the unpaid tax calculated from the due date of filing the return till the actual date of filing.
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