<div><em>Missing the deadline of filing ITR would not allow certain benefits, instead interest and penalty could be levied, writes <strong>Sunil Dhawan</strong></em></div><div> </div><div>The last date for filing income tax return (ITR) for the assessment year 2015-16 (financial year 2015-15) has been extended till 7 September, 2015. Earlier, the last date which usually is 31st July had been extended till 31st August. </div><div> </div><div>Now, that the income tax department has generously extended the deadline for filing of taxes, one should not find excuses not to do so. However, there are many who still for reasons known best to them either keep the exercise for the last moment or want to know what if the Return is not filed on time. Missing the deadline means three important things for all taxpayers: They lose certain benefits, may have to pay interest and lastly there could be penalty.<br> </div><div>Let’s see the implications, if you miss the deadline.</div><div> </div><div><strong>Are taxes due?</strong> In case you miss the 7 September deadline of filing ITR, you will be left with two options depending on whether you have any taxes to be paid? If there is no tax liability, you may file your return without paying any penalty by 31 March 2016. This could be true for all those salaried tax payers if they don’t have income from any other source other than salary. In their case, if tax has been deducted at source (TDS), and there is no further tax liability, they can still file up to 31st March 2016. </div><div> </div><div>However, if you still have to pay tax and miss the deadline, you will have to pay a monthly penal interest when you file your return by 31 March. In case, you cross that deadline too, you will have to pay a penalty of Rs 5,000, along with the monthly penal interest. The penal interest on the due tax amount is at the rate of 1 per cent per month. This can go up to 2 per cent if you have not paid the required advance tax.</div><div> </div><div><strong>Is there a refund?</strong> For those who would be entitled to a refund, filing before due date helps. In case you are entitled to a refund, interest on it will be given to you only from the date of filing the return. The longer one delays, it’s a loss for the taxpayer as the interest earned will be less.</div><div> </div><div><strong>Revise your mistakes</strong>: At times, there could be a mistake while filing the ITR. One could even forget to account for certain deduction. There is however a provision to file Revise return. This provision is available to only those who file before the due date. If you file the ITR before due date, you can revise your return form to correct any mistakes or deletions, such as missing a particular deduction, by 31 March. However, if you do not file your return on time, you will not be able to avail of this facility. </div><div> </div><div><strong>Set-off of losses</strong>: Losses incurred under the capital gains head of income may be set-off against gains in the future years. So, if you have incurred losses on shares during the year, you will be able to carry forward the losses for future tax set-offs only if you file the return on time. If you fail to catch the deadline, you will not be allowed to carry them forward to subsequent years. Considering the stock market performance, there would be many taxpayers sitting on losses in their portfolio.</div><div> </div><div>One would surely want to take such benefits and avoid paying interest, penalty to the government. Filing of taxes too has become easier and simplified to a great extent. There are private tax filing sites and also the income tax government’s website helping one to file returns online. Here and here are the links to help you file taxes online.</div><div> </div><div><a href="http://www.businessworld.in/banking-finance-personal-finance/digital-all-way#sthash.5HHuvcUz.dpbs"><strong>Digital All The Way (Online filing of ITR)</strong></a></div><div> </div><div><a href="http://www.businessworld.in/economy-india-personal-finance/simplified-new-income-tax-return-form-2a#sthash.GQxurqrJ.dpbs"><strong>The Simplified New Income Tax Return Form 2A </strong></a></div><div> </div><div> </div><div> </div>
