31st March 2018 is the last date to file income tax return for financial year 15-16 and 16-17.
Part 1: Who is required to file income tax return mandatorily?
1. Gross total income for type of assessees (Total Income before allowing any deductions under section 80C to 80U: Examples – LIC/PF/mediclaim etc) exceeds the limit given below as:
|Senior citizens ( who are more than 60 years old but less than 80 years old)||3,00,000/-|
|Super senior citizens (who are more than 80 years old).||5,00,000/-|
2. In case of a company or a firm or any other entity, irrespective of whether there is any income or loss or NIL income during the financial year (examples – Shell Companies, Companies having loss), it is mandatory to file income tax return.
3. Claim Income Tax Refund.
4. Carry forward loss under any head of income.
5. Resident individual and have an asset or financial interest in an entity located outside of India. (Not applicable to RNORs).
6. If you are a Resident and have signing authority in a foreign account. (Not applicable to RNORs).
7. Receipt of income derived from property held under a trust for charitable or religious purposes or a political party or a research association, news agency, educational or medical institution, trade union, a not for profit university or educational institution, a hospital, infrastructure debt fund, any authority, body or trust.
8. Tax has been deducted from your income, then you must file income tax return to avoid notice from the income tax department as it has information about your income.
9. You have entered into any transaction listed under the Annual information Return (AIR) (Section 285BA read with Rule 114E of the Income Tax Act 1961 (w.e.f April 01, 2016) (Note – 1), then you must file your IT Return as the income tax department already has notice about you being involved in such transactions and may send you a notice asking about your income tax return.
Examples of such transactions are sale/ purchase of immovable property above Rs. 30 lakhs, payment through credit card of more than Rs. 2 lakhs during the financial year etc.
10. You have filed your income tax return for the previous year then it is advisable that you file income tax return for the current financial year also even though you may not be liable to just to avoid a notice from the income tax department.
11. Others such as: Easy eligibility in loan applications from Banks, increased chances of obtaining visa outside India, allotment of government tenders, registration on panels etc.
Part 2: What is last date for filing of income tax return?
If an individual or any other entity fails to file the income tax return by the due date, then as per section 139(4) of the income tax, belated return can be filed.
What is the deadline to file belated ITR?
31st March 2018 is the last date to file:
|Financial year||Assessment Year||Due Date for filing (Not audited)||Due Date for filing (Audited)||Last date for filing|
|2015-16||2016-17||5 Aug, 16||17 Oct, 16||31 March 2018|
|2016-17**||2017-18||5 Aug, 17||31 Oct, 17||31 March 2018|
** Earlier Provision: In respect of returns pertaining to AYs prior to AY 2017-18 i.e. AYs 2016-17 and earlier years, a taxpayer could file a belated return any time before completion of 1 year from the end of the relevant AY. Therefore, the amendment has effectively reduced the time period by 1 year.
New Provision: According to the provisions of law as it stands today, a belated return can be filed any time before the end of the relevant Assessment Year (AY). However, this rule applies from the AY 2017-18 (introduced in Budget 2016).
Can you revise belated tax returns?
Yes, I-T return for the FY 2016-17 and onwards filed under section 139(4), which is belated tax return can be revised. However, belated returns filed for previous financial years cannot be revised because the income tax law for this was changed from FY 2016-17 onwards.
Part 3: Consequences of non-filing of Income tax returns by 31st March, 2018
1. Penalty and taxes:
If there are any taxes which are unpaid, penal interest (sec 234A) @ 1% per month or part thereof will be charged till the date of payment of taxes. Also Penalty of Rs 5,000 may be charged. The penalty is not levied in all cases and depends upon the circumstances of the case.
For returns of FY 2017-18 and onwards,
|Return filed after due date upto 31 December,18||5,000/-|
|After 31 December, 18||10,000/-|
|However, penalty will be Rs 1,000 for those with income upto Rs 5 Lakhs.|
2. 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 the future gains in case where return has not been filed within the due date.
3. Prosecution can be initiated U/s 276CC
The provisions of section 276CC of the Act, which lays down the parameters, for initiating harsh and draconian prosecution proceedings against the defaulting assessee, punishment under which is extended upto imprisonment along with levy of fine.
Summary for easy understanding:
Penalize the assesse for
(1) Willful delay in furnishing return of income
(2) Intention of the assessee to evade tax
4. Notice under Non-filers Monitoring System (NMS):
5. No deduction u/s 80 (Note – 2)
Some of the deductions available under section 80 of the Income Tax Act are allowed in case of filling the return within due date.
6. No interest on Income Tax Refunds
In case there is a refund which is due to the taxpayer, the interest on that refund will not be paid to the taxpayer for the period relating to the delay in filling the return.
Note – 1
|Section 285BA read with Rule 114E of the Income Tax Act 1961 (w.e.f April 01, 2016)|
|Sr. #||Nature of transactions||Reporting Entity|
|1(a,b)||Cash payment for buying bank drafts, pay order , Banker’s cheque, pre-paid instruments from RBI for an amount aggregating to Rs. 10 Lakhs or more in a financial year||Banking Company, co-operative bank covered under Banking Regulation Act 1949|
|1(c)||Cash Deposits/ Withdrawal in current account aggregating to Rs. 50 Lakhs or more in a financial year||Banking Company, co-operative bank covered under Banking Regulation Act 1949|
|2||Cash Deposits other than current account aggregating to Rs. 10 Lakhs or more in a financial year||Banking Company, co-operative bank covered under Banking Regulation Act 1949, Post Master General|
|3||Fresh Time Deposits (other than renewal) aggregating to Rs. 10 Lakhs or more in a financial year||Banks, Co-operative Banks, Post Office, Nidhi Company, NBFC|
|4||Credit card payment aggregating to
– Rs. 1 Lakhs or more in cash– Rs 10 Lakhs or more by any other mode
|Banks, Co-operative Banks, Any other institutions issuing such cards|
|5||Bonds/ Debentures purchased for an amount aggregating to Rs. 10 Lakhs or more in a financial year||Any company/institutions issuing such bonds or debentures|
|6||Share purchase (including share application money) for an amount aggregating to Rs. 10 Lakhs or more in a financial year||Any company/institutions issuing such shares|
|7||Buy Back of shares (other than from open market) for an amount aggregating to Rs. 10 Lakhs or more in a financial year||Any listed company buying back its securities u/s 68 of CA 2013|
|8||Units purchase (other than for transfer from one scheme to another) for an amount aggregating to Rs. 10 Lakhs or more in a financial year||Trustee/ Authorized personnel of Mutual Fund|
|9||Sale of Foreign currency by whatever mode to a person for an amount aggregating to Rs. 10 Lakhs or more in a financial year||Authorized person as per FEMA 1999|
|10||Purchase/ Sale of immovable property by any person for an amount of Rs. 30 Lakhs or more as valued by Stamp valuation authority||Inspector General/Registrar/Sub registrar|
|11||Receipt of cash payment by any person for sale of goods or supply of services of any nature||Any person who is liable for audit under section 44AB of the Act.|
|12||Cash deposits during November 9, 2016 to December 30, 2016 aggregating to Rs. -12.5 Lakhs or more , in one or more current account of a person -2.5 Lakhs or more , in one or more account (other than current account) of a person||Banking Company, co-operative bank covered under Banking Regulation Act 1949, Post Master General|
|13||Cash Deposits during April 9, 2016 till November 9, 2016 in respect of accounts reportable under clause 12(above)||Banking Company, co-operative bank covered under Banking Regulation Act 1949, Post Master General|
Note – 2
Existing Provision – Section 80AC.
Deduction not to be allowed unless return furnished.—Where in computing the total income of an assessee of the previous year relevant to the assessment year commencing on the 1st day of April, 2006 or any subsequent assessment year, any deduction is admissible under section 80-IA or section 80-IAB or section 80-IB or section 80-IC, no such deduction shall be allowed to him unless he furnishes a return of his income for such assessment year on or before the due date specified under sub-section (1) of section 139.”.
(In Respect of above Sections deductions will not be permitted if Income Tax Return is not filed within the time permitted U/s. 139(1) of Income Tax Act,1961 for Assessment Year 2018-19 and Onwards) –
|Section 80H||Deduction in case of new industrial undertakings employing displaced persons, etc.|
|Section 80HH||Deduction in respect of profits and gains from newly established industrial undertakings or hotel business in backward areas|
|Section 80HHA||Deduction in respect of profits and gains from newly established small-scale industrial undertakings in certain areas|
|Section 80HHB||Deduction in respect of profits and gains from projects outside India|
|Section 80HHBA||Deduction in respect of profits and gains from housing projects in certain cases|
|Section 80HHC||Deduction in respect of profits retained for export business|
|Section 80HHD||Deduction in respect of earnings in convertible foreign exchange|
|Section 80HHE||Deduction in respect of profits from export of computer software, etc.|
|Section 80HHF||Deduction in respect of profits and gains from export or transfer of film software, etc.|
|Section 80I||Deduction in respect of profits and gains from industrial undertakings after a certain date, etc.|
|Section 80IA||Deductions in respect of profits and gains from industrial undertakings or enterprises engaged in infrastructure development, etc.|
|Section 80IAB||Deductions in respect of profits and gains by an undertaking or enterprise engaged in development of Special Economic Zone|
|Section 80IAC||Special provision in respect of specified business.|
|Section 80IB||Deduction in respect of profits and gains from certain industrial undertakings other than infrastructure development undertakings|
|Section 80IBA||Deductions in respect of profits and gains from housing projects.|
|Section 80IC||Special provisions in respect of certain undertakings or enterprises in certain special category States|
|Section 80ID||Deduction in respect of profits and gains from business of hotels and convention centres in specified area|
|Section 80IE||Special provisions in respect of certain undertakings in North-Eastern States|
|Section 80JJA||Deduction in respect of profits and gains from business of collecting and processing of bio-degradable waste|
|Section 80JJAA||Deduction in respect of employment of new employees|
|Section 80LA||Deductions in respect of certain incomes of Offshore Banking Units and International Financial Services Centre|
|Section 80O||Deduction in respect of royalties, etc., from certain foreign enterprises|
|Section 80P||Deduction in respect of income of co-operative societies|
|Section 80Q||Deduction in respect of profits and gains from the business of publication of books|
|Section 80QQA||Deduction in respect of professional income of authors of text books in Indian languages|
|Section 80QQB||Deduction in respect of royalty income, etc., of authors of certain books other than text-books|
|Section 80R||Deduction in respect of remuneration from certain foreign sources in the case of professors, teachers, etc.|
|Section 80RR||Deduction in respect of professional income from foreign sources in certain cases|
|Section 80RRA||Deduction in respect of remuneration received for services rendered outside India|
|Section 80RRB||Deduction in respect of royalty on patents|
Last date for filing current financial year 2017-18 is:
|Financial year||Assessment Year||Due Date for filing (Not audited)||Due Date for filing (Audited)||Last date for filing|
|2017-18||2018-19||31 July, 18||30 September, 18||31 March 2019|
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