Ensure you don’t miss deadline, delay will mean heavy penalty

MUMBAI : Every year you have to pay income tax to the government, but picture shelling more cash just because you failed to file your returns in time.

To save yourself from burning your pockets more than required, experts advise you to file returns in time.

For this assessment year, the due date to file income tax returns is July 31. The time limit for the revised return for the current period, in case you miss the deadline, is March 31, 2019.

If you delay filing the income-tax returns and don’t do it before July 31, you will be liable to pay a penalty. For instance, if you file your ITR after July 31, but before December 31, you will have to pay a penalty of ₹5,000.

If you fail to file your returns before December 31, you are liable to pay ₹10,000 as penalty.

The penalty is applicable if your annual income is above ₹5 lakh. In case you earn less than ₹5 lakh annually and there is a delay in filing ITR, you will have to pay ₹1,000 as penalty.

“In case you are involved in a business or profession and you fail to file your returns before the due date, you will not be able to carry forward your losses as such losses will not be allowed to be set off against your income,” said Ankit Bhansali, chartered accountant at Mumbai-based tax consultant firm, Tax Baniya.

“Over and above the penalty, you will also have to pay a 1% penal interest for every month after the deadline,” said Mohit Jain, managing partner at Jain Mohit & Co. The interest will be charged after the due date immediately and will continue on a monthly basis till you pay your taxes.

Apart from the aforementioned penalties that you will have to bear, another consequence of delayed return filing is that you will not receive your tax refund on time.

Hence paying taxes on time is advisable not just to become a responsible citizen, but also to keep your finances in check.