Since this is high time where nationwide trending of the words ‘Due Date’ is at its peak, we take time out of the heavily work loaded schedule to address those who have still not filed their income tax returns for FY 2013-14. Here are some reasons why you should consider filing your tax returns before 31^st July, 2014. Carry forward of losses benefit To all businessmen who runs their business in a sole proprietorship shell and is not subject to tax audit under Income Tax Act, 1961, the loss under the head ‘Profits and Gains of Business or Profession’ (other than depreciation loss) cannot be carried forward if the returns is filed late. However, one can still set-off the losses against the income (other than income under the head salary) under other heads of the same year. To all stock market traders, this also applies to any short-term or long-term capital loss from sale of shares. The same can be carried forward and set off against capital gains/business profits, which may arise in the next eight years. However, if the tax returns are not filed by the due date of July 31, 2014, the above benefit will not be available. Delay in processing of refunds prevented In general, the earlier you file the return, the earlier you receive the refund. If the return is filed late, there will be a delay in the refund. Further, the interest on refund, wherever applicable, is also reduced to an extent if the return is filed late. Therefore, if you are entitled to refunds and would love to get it credited to your bank account, you have 11 days to bank on it. Revision of tax return not possible Returns filed after the due date would be considered belated tax returns. Under the law, belated tax returns cannot be revised. However, if you file the return within the due date, you will have a option to revise it later. Moreover, in case you want to claim foreign tax credit based on foreign tax return received later, you will not be able to do so if the original tax return is filed after the due date. Some details may not be available by the due date. In such cases, the Act allows the filing of belated returns within one year from the end of the assessment year or completion of assessment, whichever is earlier. However, you will have to forgo the right to carry forward your losses or revise the return. In such a case, you can file a return with the due date and then revise it with actual details, subject to certain conditions. Accessibility to IT Dept portal To file a return in time, it is important that the return preparation process is initiated well before the due date. This is because most people start it late which puts pressure on their tax advisor. For the tax payer, it means that his tax advisor may not be able to give full justice to his tax return and, unfortunately, to file the return in time becomes his only focus. Owing to the same reasons, the e-filing portal of the income tax department at times virtually becomes inaccessible during the last 2-3 days before the due date Interest liability avoidance In case there are any taxes payable (after considering TDS, advance taxes and other credits available), any failure to file the returns of income within the due date would attract interest at the rate of 1% per month for the delay in filing the returns. The delay in filing the returns will also increase the interest payable for default in the payment of advance tax. Interest is levied if the tax return is not filed by the due date. This is besides the other interests levied under various sections of the Income-tax Act, 1961. As per Section 234A of the Act, an interest is levied at 1% per month on the tax payable, from the due date of filing the return to the actual date of filing, subject to certain conditions. Hence, filing the return within the due date can help avoid this interest liability. The due date for filing tax return for the year 2012-13 is July 31, 2014. At Taxmantra.com, we provide one-to-one Personalized Income Tax return Filing Services to help tax payers in addressing their tax issues and also in filing of their income tax returns. You can look to visit our Online ITR Filing Page. You can also call us at +91 9038335433 to avail this service or send an email at – “info@taxmantra.com”