Apart from companies and businesses the end of a financial is also crucial for an individual. Usually busy looking after their business, entrepreneur over look their individual taxation requirements. The basic condition to be fulfilled by an individual is filing their Income Tax Returns and paying their personal tax dues.

Who DO NOT need to file tax returns before 31st March 2016?

 

1. Last chance to file for FY 2013-14

 

For FY 2013-14, 31.03.2016 is the last and final date for filing ITR.

 

If you do not wish to file for FY 2013-14 then do not file your return by 31^st March, 2016. It cannot be filed beyond this date and after this date you will never be able to file online return for FY 2013-14. Accordingly, anytime after the lapse of 2 years from the end of the Financial Year the only option would be to file a manual return which in itself is very hectic work to do.

 

2. Penalty

 

A penalty of Rs 5000 may be imposed u/s 271F by the AO if the return of income is not filed within the end of the relevant assessment year i.e. by 31.3.2016.

 

So, if you have excess money and wish to pay penalty then do not file your return for FY 2013-14 by 31^st March, 2016.

 

Such penalty can only be imposed if taxable income for the FY – 2014-15 but failed to file your income tax return within 31^st march 2016.

Avoid penalty for the FY 2013-14

 

NO penalty can be imposed by the IT Department once you have filed your return. So no need to panic if you miss the 31st July deadline, you can still file your returns on or before 31st March 2016 for Financial Year 2013-14 i.e. Assessment Year 2014-15 without a penalty.

 

3. Tax Planning

 

Assessee with excess money and wish to pay more tax to the department then certainly tax planning is not for you.

But you want to save tax and if you have not done your tax planning for the Financial Year 2015-16, you are about to run out of time. The last date Tax planning means to make adequate investments and expenditure to minimize your taxes for a particular year. The last date for the tax planning for the FY 2015-16 is 31^st March 2016. This is not mandatory, however an individual whose income crosses the exemption limit should do tax planning. We all make investments right? Then why to miss an opportunity to save taxes too!

 

For Example: To claim deduction under section 80C the investments needs to be made before 31^st March 2016. In case the investments are made after 31^st March, such investments would be considered in the next Financial Year.

 

4. Advance Tax

 

Do not file your return and also do not pay your advance tax if you wish to pay additional interest on the tax payable.

 

Salaried employees generally do not need to worry about advance tax provisions as their taxes are paid in the form of TDS. However, if a salaried individual has any other income which is not disclosed to the employer, then the excess taxes will be paid in the form of advance tax.

 

Last date for the payment of advance tax for is 31^st March, beyond this date various interests are charged on the outstanding tax liability.

Do not ignore your individual taxation requirement, if get stuck on an individual level, who will take care of your company?

 

Note: In respect of the returns which will be filed by 31.3.2016, if taxes are not paid either as advance tax or TDS, you may have to pay the interest for non payment of advance tax as well as for delay in filing of income tax return @ 1% for each of the default u/s 234 of IT Act 1961. So effectively, if adequate tax was not paid earlier as ascertained against your income, you land up paying exorbitant interest for each month of the delay.

 

5. If notice received for FY 2013-14

 

Assessee who opts for long compliance process shall ignore the notice received for filing of return for FY 2013-14.

 

If any assessee has received notice from income tax department to file their return for the FY 2013-14 then you must hurry up. If such return not filed by 31^st March, 2016 then you may never file the return and along with this you will have to go for long compliance process.

 

If you do not want a statutory document which is generally asked as a proof while opening a new bank account, applying for an overdraft facility, loan or passport or any other such basis thing then do not file your return by 31^st March, 2016.

 

We advice to file ITR even if you do not have any taxable income or all your income is exempt. 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.

 

So, just hurry up and file your return. Don’t wait for the last date to arrive.

 

To file your return properly and within due date, you may reach us on taxmantra.com.

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