Tuesday, 20 March 2018

Have You filed ITR for 2017? Don’t Delay Further

Have You filed ITR for 2017? Don’t Delay Further

If you haven’t filed income tax return (ITR) for 2016-2017 yet, then don’t delay further. This is because according to new income tax rules time period for filing belated or revised income tax return has changed from two years to one financial year. Accordingly, return for 2016-17 can be filed or revised till March 31, 2018, only.
Archit Gupta, Founder and CEO ClearTax, “ For most taxpayers the due date for filing of income tax return for a particular financial year is 31st July of the following financial year. For example, a salaried individual has to file his return for FY 2016-17 (AY 2017-18) on or before 31 July 2017.”
He adds, however, one may miss filing his return before such due date for various reasons. “ Such reasons could range from a taxpayer genuinely being unaware of the due date or certain unforeseen circumstances preventing him from doing so or it could also be on account of a casual approach on the part of the taxpayer.”
If you don’t file the return by due date then it is treated as  belated return. But the procedure for filing a belated return remains the same as filing an original return. But you might have to pay penalty and your losses are not eligible for set-off against future profits in case of belated filing of return.
Therefore, for returns pertaining to financial year 2016-17 (AY 2017-18) and subsequent years, the last date would be the end of the relevant assessment year. Having said that for FY 2016-17, last date would be 31 March 2018, which would be the last opportunity for you to file return.

Penalty for late Filing

One should never miss the due date of filing the income tax return otherwise one might have to pay heavy penalty for late filing. For example: for returns up to 2016/17 you have to pay penal interest at the rate of 1 per cent till you file the return. For returns 2017-18 and onwards there is a late fee of Rs 5,000 if the return is furnished after the due date but on or before December 31 of the relevant assessment year. There will be a fee of Rs 10,000 if ITR is filed after December 31. For small taxpayers there is, however, some concession. For people earning less than Rs 5 lakh the penalty amount should not exceed Rs 1,000.
Gupta, says, “ First and foremost, if a taxpayer was supposed to file an original return as per mandates of law and has not filed an original or a late return, there are chances of receiving a notice from the income tax authorities for “Income escaping assessment” followed by a levy of penalty for under reporting of income.
Secondly, an income tax refund due , can be claimed only vide a return. Therefore, if one has not filed his original return, at least a belated return needs to be filed  to not miss out on receiving refunds.”
Additionally, home loans etc are approved by banks only if one has furnished copies of returns filed. For this purpose, even belated returns would suffice.

What if you miss the extended window?

If you do not file income tax return within the extended window, then it is considered as time barred under law. If refund is due or you want to set off your  losses then you need to convince commissioner of income tax genuine reasons for not filing of income tax return. It is, therefore, advisable to file your return on time for keeping unnecessary hassles at a distance


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