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Fillling return

29 July 2016

A govt employee filling his return in ITR 1 against form 16. If he will file it after 31.07.16 then any penalty will impose to him. If he has tax payment or refund in both case. Please clarify it. From when this penalty will impose by IT department.

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2 Replies

suresh (proprietor) (425 Points)
Replied 29 July 2016

The due date for filing income tax return for individuals-July 31 -t several people think that if one has paid all one's taxes there is no adverse consequence even if one misses the tax return filing deadline. However, this is not correct. Even if all your taxes have been paid you would still lose out on certain benefits if you do not file your income tax return by the due date such as:
1. Cannot revise a belated return

2. Loss in interest on refunds

In case you claim a refund in your return of any advance tax paid/TDS, you would lose some of the interest (currently 6% per annum paid by the tax department) on such refund. The interest on refund is normally computed from April 1 of the assessment year (the year immediately following the financial year for which the return is filed) till the date of grant of refund However, in case of a belated return (i.e. return filed after due date) interest is computed from the actual date of filing the return till the date when refund is granted. This means loss of the interest that would have been paid for the period April 1 till date of filing the return.

3. No carry forward of losses

4. Delayed return where tax remains unpaid
If you have any unpaid tax liability, filing your return after the due date would result in levy of penal interest @ 1% per month from the due date of filing the return till the actual date of filing.

5. If return is not filed even by end of relevant Assessment Year
If you do not file your tax return even by 31st March of the relevant assessment year (i.e. the year immediately after the financial year for which the return is to be filed) but no taxes are due, a penalty of Rs. 5,000 can be levied by the tax authorities if you are unable to provide a reasonable cause for the delay.