If you were liable to file Income Tax return for FY 2011-12 & FY 2012-13 then you can still file Income Tax Return of FY 2012-13 before 31st March 2014 without penalty and of FY 2011-12 with penalty & interest even if the July due date is gone. Every year there are many individuals who could not meet the deadline, this year too and the very most reason this year is delay in receipt of Form 16 from the employer because changes were made this year in process relating to preparation of Form 16.
Income tax return can be filed within a period of two years from the end of the financial year concerned. So, for income tax return of FY 2011-12 the due date is 31.03.2014 and for FY 2012-13, due date is 31.03.2015 with penalty & interest.
But, before moving towards for filing belated return, you must be aware of consequences of not filing income tax return before due date:
- Interest u/s 234A
Assessee is liable to pay interest @1% per month or part of the month for the period in delay. The interest is chargeable on the amount of tax determined as reduced by the advance tax & TDS.
If the assessee fails to furnish the return before the end of the assessment year (that is for FY 2011-12, tax year ended march 2012, last date is March 2013); he shall be liable to a penalty of Rs. 5,000.
- Carry forward of losses not allowed
In case of belated filing, assessee is not allowed to carry forward any losses incurred under the head â€œCapital Gainsâ€ and â€œBusiness Lossesâ€ (other than depreciation losses).
- Revision of tax return not possible
In case of belated filing, assessee is also not allowed to revise tax returns.
Willful failure to furnish the return of income may also attract prosecution under the provisions of the income tax.
- Interest on Tax Refunds
In case of belated filing, you will not be entitled to interest on tax refund, if any.
Regarding Income Tax Return of FY 2011-12
Individuals can file Income Tax return for FY 2011-12 only till 31st March, 2014 with interest u/s 234A and penalty. But, you should not deposit penalty unless you receive notice to do so from your wardâ€™s income tax Assessing Officer.
Please note that the assessee would not be able to file the Income Tax Return of AY 2012-13 (FY 2011-12) after 31st March 2014. So those who had not yet filed should file their return on or before 31st March 2014.
Regarding Income Tax Return of FY 2012-13
Individuals can file Income Tax return for FY 2012-13 still after 31st March, 2014 till 31st March 2015 but it is important to note that after 31st March 2014 assessing officer can impose a penalty of Rs. 5000.
Thus, if you delay it beyond March 31, 2014, you will not only be levied with the Penal Interest but may even have to face the maximum penalty, i.e. a flat amount of Rs. 5000.
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 2012-13 before March 31, 2014.
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