New Delhi: The financial year 2017-2018 is coming to end on March 31 and this particular date is crucial for those who have not filed their Income Tax Return (ITR) for the said financial year or assessment year (AY) 2018-19.
The Income Tax Department too has been time and again reminding taxpayers to file their tax returns for the above mentioned period on its portal.
What is belated return?
An income-tax return that filed after the due date is called Belated Return. It is filed under section 139(4) of the income tax Act.
How to file belated return?
The process of filing belated return is similar to that of filing regular Income Tax Return. All you need to do is select the ITR form that applicable for you. You can fill the form in the same manner as when you had filed the return on time. You will have to choose the assessment year for which you are filing the belated return.
Drawbacks of filing Belated return?
However, you will not eligible for select exemptions and carry forward losses (other than house property loss) on filing belated ITR. Furthermore, you may also have to shell out more on interest under different sections of the IT Act.
Penalty on filing Belated return?
You will be charged an interest of one percent per month (simple interest) on the tax amount outstanding. This interest will be calculated from the due date applicable. For returns of FY 2017-18 and onwards, penalty of Rs 5,000 will be charged for returns filed after due date but before December 31. If returns are filed after December 31, a penalty of Rs 10,000 shall apply. However, penalty will be Rs 1,000 for those with income upto Rs 5 Lakh.