What to do if you missed filing Income tax returns within the due-date?

Bad news: The first due date for filing the tax returns ended on 31^st August 2019

Good news: You can still file a belated tax return even after the due-date with additional interest and penalty.

If you fail to file the tax returns by 31^st August, 2019, then you have an option to file the tax returns within the entire assessment year i.e for FY 2018-19 (AY 2019-20) you can file the tax returns by 31^st March 2020. However, delaying the filing can be a costly affair. Here are the implications in case you wish your tax returns post the deadline of filing:

1. A belated return attracts a late filing fee u/s 234F of the IT Act. An individual is liable to pay a fee of Rs 5,000, if their tax return for the financial year 2018-19 is filed after the due-date (i.e., 31^st August, 2019) but before 31^st December, 2019. The fee payable will be INR 10,000, if the tax return is filed after 1^st January, 2020 but before 31^st March 2020. However, if the total income of the taxpayer is less than INR 5lakhs, the fee amount shall not exceed INR 1,000.
2. Interest u/s 234A @1% shall be applicable on the delay in paying the tax liability. The more you delay, the interest will increase.
3. You may receive a Notice from the Income-tax department which can also lead to prosecution. Depending on the tax due, the jail term can range from 3 months to 2 years if you fail to file the ITR. However, this happens only in exceptional cases of huge tax evasion.
4. You will not be able to carry forward the losses incurred under any head of income (except House property) if the return is not filed within the due-date.
5. The income tax department may issue a notice under Section 271F for not filing ITR. You may have to pay a penalty of up to Rs.5,000 for missing the deadline.

The GPK advice: Filing of returns on time will ensure you are safeguarded from the levy of penalties and ensures that you receive your tax refund on time. As a NRI, even if you are not liable to pay any tax, it is recommended to file your tax returns voluntarily as a ‘NIL return’. This will serve you as a proof of income and will have a continuous record of it. Moreover, filing the tax returns regularly will ensure you do not get Income tax notices.

If you are not able to file your returns on your own, you can seek help from a chartered accountant. We have a team of in house experts can assist you and accurately file your tax returns online while giving you the maximum tax benefits.