If any one missed file Tax return on 31st july then don’t worry about it,this blog helps them and relief after reading this.
Hope you will like this my blog .
Unlike life, the tax department is willing to give you a second chance. Even if you forget or are unable to file your return of income for a year, the department allows you to file a ‘belated return’ under Section 139(4) of Income tax Act,1961.But there’s a cost attached to this.
A belated return can be filed within a period of one year from the end of the assessment year in which the original return is due for filing.
For ex. Due Date for filling return is 31st july 2013(A.Y 2013-14).
End of A.Y=31.03.2014
Belated return can be filled upto 31.03.2015
The option of belated filing is given to provide another window of opportunity to those who have not been able to file the return of income on time for any reason. However, a voluntary filing of return of income, even belated, would help you ward off penal consequences that may apply to non-disclosure of income. The interest and penal consequences for late filing would still apply, though.
Cost of filing late?
A delayed tax filing would cost you interest at the rate of 1% per month on the outstanding tax liability for each month of delay in filing.If there is no tax on your income than no need to pay any extra cost for filling return. Apart from the interest levied, a return delayed beyond the assessment year also attracts a penalty of Rs 5,000 in both cases without tax return or with tax return.
For ex:-After 31st Mar,2014 there is penalty of Rs 5,000 and after 31st july/30th Sep,2013 1% per month would be leived on the outstanding tax liabilty upto date of Actual filling of return .
Here it is to notice that interest liability would not be attracted if TDS is deducted from your income or you pay all the taxes before the due date.
But one problem would incured
A belated return does not entitle you to carry forward your Business and Cap Gain losses to be set off in a subsequent year.
So, if you are a businessman ,all your business or speculative losses have well and truly gone down the drain and there is not even a set-off salvage available in a later year. Same for capital losses. Not all losses are really lost though; a belated filing does not impact the carrying forward of house property losses and depreciation allowances.
Finally, if you are filing a belated return, you’d better get it right. This is the message from a decision of the Supreme Court, which ruled that late filers don’t have the option of revising their return to amend any mistakes.