The due date of filing income tax return is mentioned u/s 139(1). Many people came up with a query that what will happen if we do not file the Income Tax Return by the aforementioned deadline. There are many benefits of filing the Income Tax Return within due date. But, here we are discussing only the adverse consequences of late-filing of the Income Tax Return which includes Penalty under Section 271F of Income Tax Act, 1961, Interest under Section 234A of Income Tax Act, 1961, Non-Carry Forward of Losses, Best judgment assessment (Assessment under section 144), Claim of Refund of Taxes.
You can always file your income tax return (before receiving any notice from the department) till last date of Assessment year of which return is required to be filed by you. Filing your income tax return after the due date invites some consequences which are as follows:
|Date of Filing||Fees Leviable|
|If the return is furnished after the due date of filing but on or before the 31st day of December.||Five thousand rupees|
|In any other case||Ten thousand rupees|
|Note: If the total income of the person does not exceed five lakh rupees, the fee payable under this section shall not exceed one thousand rupees.|
Thus, Non-Filing of the Income Tax Return may result in the Best Judgement Assessment. This is an assessment carried out as per the best judgment of the Assessing Officer on the basis of all relevant material he has gathered.
Therefore, just keep in mind the above consequences of late filing of your Income Tax Return.
(Author ‘CA Ashish Aggarwal’ is associated with portal www.fileitronline.com which provides online financial services in the nature of online income tax returns filing)
Republished with Amendments