The last date for filing an I-T return was July 31 which was extended by the Income Tax department this year to August 31. So, your return for financial year 2017-18 (Assessment year 2018-19) was supposed to be submitted last by Friday.
If you missed filing your Income Tax return yesterday, August 31, then filing a belated return can help you save further penalties or attract an assessment by the Income Tax department.
What is belated return?
Section 139 (4) of the Income tax Act deals with late filing of I-T returns. If you don’t file the return within the stipulated time and miss the deadline, then you may file a belated or late I-T return before the end of the relevant assessment year. This means you can file the belated return for 2017-18 by 31st March 2019.
Do you still have to pay the Rs 5,000 fine?
Yes, for any return furnished after the due date, a fee of Rs 5,000 is to be paid for default if return is filed by December 31. For return filed after December 31, a fee of Rs 10,000 is to be paid. The late filing fee has been restricted to Rs 1,000 if your total taxable income is not more than Rs 5 lakh.
What if your total income is not taxable?
If your income is below the taxable limit, then you need not worry about the said penalties. No fine is payable and no interest stands due to be paid as there is no tax liability.
What are the consequences of filing a belated return?
1. You cannot carry forward your losses except under the head house property.
2. An interest is levied for late filing of return at 1 per cent per month
3. Fine of Rs 5,000 or Rs 10,000 is to be paid as prescribed
4. Certain exemptions (allowances or deductions from total taxable income) are not available.
