Why you should not delay filing the Income Tax return?

Income Tax Return forms the base for any and every Indian citizen and is mandatory. As per Section 139(1) of Income Tax Act 1956, it is compulsory for

• company and firm to file return of income or loss,
• any person other than a company or a firm, having total income that exceeds the basic exemption limit without giving effect to the deductions under chapter VI-A, or
• any person other than not ordinary resident of India, who is not required to file return under section 139(1) if such person

1. holds, as a beneficiary owner or otherwise of any asset or authorised signatory of any account located outside India
2. is a beneficiary of any asset located outside India.

Although if the income from assets located outside India is already included by the person mentioned in point (a) then the beneficiary doesn’t need to file income tax return.

The return of Income Tax should never be delayed because of several rights and privileges that you lose once the return is delayed. In case you are not ready, may file the return and revise it soon afterwards

Due date of filing Income Tax Return

If the Income Tax Return is not furnished within the prescribed time mentioned

One can always furnish the Income Tax return within 2 years from the end of previous year for which the return is required to be filed before receiving any notice but have to face some consequences.

For Example – For the previous year 2015-16:

Every assessee who is required to file return of income under Income Tax Act is advised to file return under the due date and if they miss the deadline, they should be aware of consequences of the delay.

Now, apart from interest to be paid on taxes unpaid and paid at time of filing of delayed return, other consequences are-

Assesses is not allowed to carry forward the Losses if the return is filed after the due date of filing the income tax return

1. You would lose the interest for such period of delay i.e. from the last date due for filing the tax return vs the date return is filed
2. Assessing Officer may charge penalty upto Rs 5000 for delay in filing the income tax return in case the return is filed after the expiry of the financial year in which you were to file the return or to say the return is filed after 31^st March succeeding the date return was to be filed;
3. Returns filed beyond due date are not allowed to be revised while other returns can be revised till next one year or till the same are assessed whichever is earlier

The return of Income Tax should never be delayed, because of several rights and previlegs that you lose once the return is delayed. In case you don’t have all the documents ready, you must file it and may revise later on