Still in a dilemma whether you are required or eligible to file your income tax return by 31st March, 2016 or not? The current financial year is going to end on 31st March 2016. Due date is closing in and taxpayers shall pay tax and file their return well in time to avoid any interest or penalties.

Filing your tax return has become very simple now but a lot of taxpayers still manage to miss the deadline. Lack of awareness among the taxpayers is one of the main reasons for low level of compliance towards tax laws.

 

Do not panic even if you have missed out filing of your return for this or earlier two financial years. Here, you will find which assessee can file their return by 31st March 2016. 31^st March 2016 last chance to file Return for past years.

 

If taxpayers, for any reason, fail to file their return by the due date (usually 31 July of the assessment year) then they have the option to file their return by March 31 of the Assessment Year (which will be March 31, 2016). However, in such case taxpayer will not be able to revise return of income if any mistakes or errors in the return of income are found.

 

Under the income tax law, if you don’t file your ITR within the deadline, you can still file it within two years from the end of the relevant FY. This means that you can file returns for FY 13-14 till 31st March 2016.

 

It is to be noted that when you file a belated return i.e., if you fail to file return by the due date then you:

• Cannot modify your tax return
• Cannot carry forward any short-term or long-term losses
• Assessing Officer may impose penalty up to Rs 5000 under section 271F
• Interest under section 234A @ 1 per cent per month is applicable on net outstanding tax due amount

 

It is always advisable that even if you do not have the full and exact details, you must file your income tax return within the due date so that you don’t lose the option to revise your return.

 

Follow the matrix below for easy understanding:

 

Financial Year	Filed by	Implications
2013-14	31.03.2016	·    If taxes paid- Penalty for late filing Rs. 5000 not mandatory ·    If taxes not paid- 1% p.m on unpaid tax
2014-15	7.09.2015 (Extended Due Date for FY 14-15)	·    Can be revised ·    No penalty charges ·    Capital Loss can be carried forward
2014-15	31.03.2016	·    Cannot be revised ·    Capital Loss cannot be carried forward ·    1% p.m on unpaid tax
2014-15	31.03.2017	·    Delayed Filing ·    If taxes paid- Penalty for late filing Rs. 5000 not mandatory ·    If taxes not paid- 1% p.m on unpaid tax

 

So, rush to file your return to avail the benefits of filing return within the time period i.e., 31st March, 2016. We advice to file your return even if you do not have any taxable income or all your income is exempt as ITR is a statutory document, and may be asked as a proof while opening a new bank account, applying for an overdraft facility, loan or passport or any other such basis thing.

To file your return properly, reach us @ taxmantra.com

_____________________________________________________________________________________________________