Did the heavy July rains leave you too ill to meet your tax advisor? Did busy office hours leave you with no time to file tax returns? Had you misplaced your Form 16 and TDS Certificate file on the way to work? You still have a breather.
You can still file your tax returns by March 31, 2015. Yes, these returns are counted as valid returns and no penalty is applicable, provided all taxes have been paid to the government. The Income Tax department allows a tax payer to file returns till the end of the assessment year (a year succeeding the income-earning year).
In fact, you can even file last assessment year’s returns that you missed filing on July 31, 2013, albeit with a penalty of upto Rs 5,000, which is at the direction of the Assessing officer.
When it comes to return filing it is better filed late than never. This enables you to get the benefit of claiming your refunds if you are eligible and also fulfil your duty to pay taxes.
So, proactively file late returns before March 31, 2015. Returns for the income earned in financial year 2013-14, can be filed by March 31, 2015, without paying the Rs 5,000 penalty, while the income earned in 2012-13 can be filed after bearing the late-filing penalty of Rs 5,000.
If you haven’t paid the taxes then an additional penalty of 1% would be levied for each month starting April 2014. Advance tax payers will have to pay the penalty from the tranche deadline – 30% by July 15, 60% by December 15 and 100% by March 31 – when the advance tax should have been paid.
But if you have losses to be carried forward then you would repent not filing returns within the deadline of July 31, 2014 as you will have to forgo this benefit. Also, while filing late returns one must be extremely careful, as late filed returns cannot be revised.
In spite of an extended tax-filing deadline available, it is in your interest to file returns by the July 31 deadline. Your refunds wouldn’t be delayed and you get a higher interest on the refunds as there the clock starts ticking as soon as you file your returns.
H&R Block India strives to blend tax expertise with a strong focus on continually improving the client experience to provide all its clients with an unparalleled value proposition for filing their Income Tax Online.