Filing of Income tax returns – Interest, penalty, other facts

Have you missed your tax filing deadline of 31st July, 2010 for FY 2009-10?  Nothing to worry. You can still file your Return for the FY 2009-10. File before 31st March, 2011 and avoid penalty imposed by the IT Department In case you have missed the deadline to file your return of income (31st July 2010) for FY 200910, you can still file the same before 31st March 2012.  But, if you file before 31st March 2011, you will get off from penalty of IT Department, however, in case of an outstanding tax liability, and you file your returns before March 31, 2011, a Penal Interest on monthly basis (starting from August 2010) will be levied on the outstanding tax amount payable. If you delay it beyond March 31, 2011, you will not only be levied with the Penal Interest but may even have to face the maximum penalty, i.e. a flat amount. So it is better, in order to limit the financial impact and to avoid penalty, especially if you have an outstanding tax liability, it is essential you file returns for FY 2009-10 before March 31, 2011. Impact of filing returns after the due date of 31st July2010 You will lose a chance to set off the loss against income in the next year. Although the income tax authorities allow individuals to file delayed returns, individuals do not enjoy all the benefits enjoyed by those filing returns before the due date. They include losses on account of transfer of capital assets or business loss cannot be set-off, or carried forward. In case you are eligible for a refund, you may end up losing interest. Thus not filing income tax returns in time have financial implications especially if you have losses which could be carried forward. Even if you do not have losses to carry forward and you miss the deadline, make sure you do not procrastinate especially if you have a tax liability outstanding as you pay a penal interest on the same. Other important points you should keep in mind – If you are filing a return of income after 31st July 2010

  • You cannot carry over/forward or set off the losses that you have incurred in The FY 2009-10.
  • In case of refund, interest will be calculated from the date you file your return instead of 1st April.
  • You will not be allowed to revise your return in case of mistake in original return.

We at Taxmantra.com aim to free you from all tax worries so that you can concentrate fully on your core expertise and optimise your career potential. We at Taxmantra.com provide full year support solving all your tax issues, in addition to filing of your return of income with excellent tax planning. Please join us now in pursuit of simplifying individual taxation! Alok Patnia Founder and Director at Taxmantra.com

Leave a Reply

Your email address will not be published. Required fields are marked *