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| Why to file income tax return by 31 March, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
31st March 2018 is the last date to file income tax return for financial year 15-16 and 16-17. Part 1: Who is required to file income tax return mandatorily? 1. Gross total income for type of assessees (Total Income before allowing any deductions under section 80C to 80U: Examples – LIC/PF/mediclaimetc) exceeds the limit given below as:
2. In case of a company or a firm or any other entity, irrespective of whether there is any income or loss or NIL income during the financial year (examples – Shell Companies, Companies having loss), it is mandatory to file income tax return. 3. Claim Income Tax Refund. 4. Carry forward loss under any head of income. 5. Resident individual and have an asset or financial interest in an entity located outside of India. (Not applicable to RNORs). 6. If you are a Resident and have signing authority in a foreign account. (Not applicable to RNORs). 7. Receipt of income derived from property held under a trust for charitable or religious purposes or a political party or a research association, news agency, educational or medical institution, trade union, a not for profit university or educational institution, a hospital, infrastructure debt fund, any authority, body or trust. 8. Tax has been deducted from your income, then you must file income tax return to avoid notice from the income tax department as it has information about your income. 9. You have entered into any transaction listed under the Annual information Return (AIR) (Section 285BA read with Rule 114E of the Income Tax Act 1961 (w.e.f April 01, 2016)(Note – 1), then you must file your IT Return as the income tax department already has notice about you being involved in such transactions and may send you a notice asking about your income tax return. Examples of such transactions are sale/ purchase of immovable property above Rs. 30 lakhs, payment through credit card of more than Rs. 2 lakhs during the financial year etc. 10. You have filed your income tax return for the previous year then it is advisable that you file income tax return for the current financial year also even though you may not be liable to just to avoid a notice from the income tax department. 11. Others such as: Easy eligibility in loan applications from Banks, increased chances of obtaining visa outside India, allotment of government tenders, registration on panels etc. Part 2: What is last date for filing of income tax return? If an individual or any other entity fails to file the income tax return by the due date, then as per section 139(4) of the income tax, belated return can be filed. What is the deadline to file belated ITR? 31st March 2018 is the last date to file:
New Provision: According to the provisions of law as it stands today, a belated return can be filed any time before the end of the relevant Assessment Year (AY). However, this rule applies from the AY 2017-18 (introduced in Budget 2016). Can you revise belated tax returns? Yes, I-T return for the FY 2016-17 and onwards filed under section 139(4), which is belated tax return can be revised. However, belated returns filed for previous financial years cannot be revised because the income tax law for this was changed from FY 2016-17 onwards. Part 3: Consequences of non-filing of Income tax returns by 31st March, 2018 1. Penalty and taxes: If there are any taxes which are unpaid, penal interest (sec 234A) @ 1% per month or part thereof will be charged till the date of payment of taxes.Also Penalty of Rs 5,000 may be charged. The penalty is not levied in all cases and depends upon the circumstances of the case. For returns of FY 2017-18 and onwards,
2. Unable to set off Losses: Losses incurred (other than house property loss) are not allowed to be carried forward to subsequent years to be set off against the future gains in case where return has not been filed within the due date. 3. Prosecution can be initiated U/s 276CC The provisions of section 276CC of the Act, which lays down the parameters, for initiating harsh and draconian prosecution proceedings against the defaulting assessee, punishment under which is extended upto imprisonment alongwith levy of fine. Summary for easy understanding: Penalize the assesse for (1) Willful delay in furnishing return of income (2) Intention of the assessee to evade tax 4. Notice underNon-filers Monitoring System (NMS): You may receive the notice for filing income tax return and the explanation may be required as to why the return is not filed till last date given for filing of income tax return. 5. No deduction u/s 80 (Note – 2) Some of the deductions available under section 80 of the Income Tax Act are allowed in case of filling the return within due date. 6. No interest on Income Tax Refunds In case there is a refund which is due to the taxpayer, the interest on that refund will not be paid to the taxpayer for the period relating to the delay in filling the return. Note – 1
Note – 2 List of Deduction Not Allowed If Return not Filed on Time Existing Provision – Section 80AC. Deduction not to be allowed unless return furnished.—Where in computing the total income of an assessee of the previous year relevant to the assessment year commencing on the 1st day of April, 2006 or any subsequent assessment year, any deduction is admissible under section 80-IA or section 80-IAB or section 80-IB or section 80-IC, no such deduction shall be allowed to him unless he furnishes a return of his income for such assessment year on or before the due date specified under sub-section (1) of section 139.”. New Provisions: (In Respect of above Sections deductions will not be permitted if Income Tax Return is not filed within the time permitted U/s. 139(1) of Income Tax Act,1961 for Assessment Year 2018-19 and Onwards) –
Last date for filing current financial year 2017-18 is:
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