Last date to file ITR or Income Tax Returns is 5 August 2017. So if you did not file your tax returns then it is better that you e file your IT Returns soon at official income tax website. Further if you file your income tax on time then you do not worry about other things. In addition there are many uses when filing ITR by August 5. In this article you know what will happen if you do not file your ITR and why meeting tax filing deadline is important.
What happens if you do not meet tax filing last date?
Penalty on late filing of taxes
First of all there will be penalty or fine on late or delayed filing of ITR. On other hand Government of India introduced late fee and this fee is Rs. 10, 000. But this fee applies only to some individuals.
While late fee is not applicable for those returns that you file for FY 2016-17. It is so because late fee starts from 1 April 2018. Besides this late fee is only for those returns that you file from FY 2017-18. Therefore it is best that you meet 5 August 2017 deadline. In case you did not file ITR then learn how to e file ITR in one of these articles.
Claiming tax refund not possible
There is another disadvantage of not reaching deadline to file income tax. And this is that you can never claim for a tax refund.
Let us say that employer deducted more tax at source. Then you pay for financial year 2016-17. It could be because there was some delay in submitting investment proof to get tax benefits or deductions.
Hence it is not possible for you to claim for tax refund. This therefore applies to claiming refund of taxes from Income Tax Department.
Addition of penal interest
There would be addition of penal interest in case you file your tax returns after last date. This however is applicable only on unpaid tax. While authorities calculate unpaid tax from due date only. On other hand if there is no tax payable then you do not pay any penal interest.
No chance to forward losses
Apart from the above stated things there is another issue that you should keep in mind. And it is forwarding losses. Here it means that Income Tax Department will allow you to carry forward your loss. While this loss purely depends on business or profession.
Even capital loss and similar things are part of this loss. So according to IT Department you carry forward these losses to next assessment year. Besides this option becomes active only when you file ITR before last date or at least on last date.
In case you miss deadline for filing returns then you cannot use this facility. Thus it is best that you file your ITR by August 5. You can also know about passing of CGST and IGST bills for Jammu and Kashmir.