ITR FILING DATES...

The government gives its taxpaying citizens 4 months of window period to plan their investments and file their income tax returns every financial year – from 1 April to 31 July. Considering that it takes only a few minutes to file your ITR, this is more than reasonable. Our obligation towards contributing to the nation’s economy doesn’t end with paying taxes. We must also file the returns by the due date or face consequences. In this article, we will discuss the penalty for late filing of tax returns for stragglers.

1. The due date for filing ITR for Assessment Year 2018-19

For the Assessment Year 2018-19, the due date for return filing was 31st August 2018. Many believe that if they have paid their taxes, they have no further obligation. However, missing the ITR filing deadline has legal consequence. Effective from the financial year 2017-18, a late filing fee will be applicable for filing returns after the due date.

2. Late Filing Fees u/s 234F

Effective from the financial year 2017-18 a late filing fee will be applicable for filing your returns after the due date i.e. 31st August 2018 under section 234F.  The maximum penalty which can be charged is Rs. 10,000. If you file your ITR after the due date (31st August 2018) but before 31st December 2018, a penalty of Rs 5,000 will be levied. For returns filed later than 31st December 2018, the penalty levied will be increased to Rs 10,000. There is a relief given to small taxpayers – the IT department has stated that if the total income does not exceed Rs 5 lakh, the maximum penalty levied for delay will be Rs 1,000.

To summarise the section 234F:

Late Filing Fee Details as per section 234F
E- Filing Date	Total income Below Rs 5,00,000	Total income Above Rs 5,00,000
Up to 31st August 2018	Rs 0	Rs 0
Between 1st September 2018 to 31st December 18	Rs 1,000	Rs 5,000
Between 1st January 19 to 31st March 19	Rs 1,000	Rs 10,000

3. Benefits of filing ITR on time

Filing your ITR on time does make you feel responsible and good about yourself, but the benefits don’t end there. Filing your ITR on time can benefit you in more ways:

4. Consequences of not Filing by the Due Date

Apart from the penalty levied by the IT Department, there are other consequences that a taxpayer may face for late filing of returns:

a. Unable to set off losses

Losses incurred (other than house property loss) are not allowed to be carried forward to subsequent years to be set off against future gains if the return has not been filed within the due date. However, if there are losses under house property, carry forward of losses is permitted.

b. Interest on the delay of filing return

Apart from the penalty for late filing, an interest under section 234A at 1% per month or part thereof will be charged till the date of payment of taxes. It is important to note that ITR cannot be filed if taxes haven’t been paid. The calculation of the penalty will start from the date falling immediately after the due date i.e. 31st August 2018. So, the longer you wait the more you pay.

c. Delayed Refunds

In case you’re entitled to receiving a refund from the government for excess taxes paid, you must file your return before the due date to receive the refund at the earliest.