Missed to pay tax within deadline? What should you do?
Posted on: 29/Aug/2017 11:44:54 AM
In general, the last date to file income tax return is 31st July. However, this year, the deadline was extended to 5th August so as to aid tax payers without any last minute rush and due to server issues faced online. If you have also missed to make tax payment, what is going to result? If you are not filing income tax or make delayed payment, what will happen?
Tax filed after 5th August:
Till 31st March 2018, you can file the tax return for this assessment year. The Income Tax Act 1961 states that belated tax filing is allowed for up to 1 year time period. This has the disadvantage of missing a few benefits which you would rather enjoy by on-time tax filing. For tax that are not paid, there may be penalties or interest charged. When you file tax online, you can enjoy the interest towards Tax Deducted at Source staring from 1st April 2017. In case of missed deadline, interest towards TDS shall be calculated from the date of delayed tax filing.
Comparing on-time vs belated return filing:
Coming to the process of belated tax filing, it is the same as normal on-time filing that can be made online. It is important to select return filed u/s 139 (4) wherever needed. For belated return, so far, no penalty or fine is imposed. Starting from FY 2017-18, this penalty may be applicable in the name of late fee which can be of the range Rs 10,000 based on total delay. Further, there are various aspects of comparing poorly and timely tax filing.
On-time tax filing also comes with another advantage of earning interest towards tax refunds. Consider, you have made advance tax payment which is more than that of actual assessment for the corresponding financial year. So, in this case, you will be bound to get refund of excessive tax amount. In case of tax filing, this tax refund shall be made together with the interest rate. However, for belated tax payers, this tax is not applicable.
When you make a mistake or failed to mention about certain income information, there is the option of filing revised return if the tax payment is done prior to the deadline. For belated tax filing, you will have to wait until the IT department sends you a notification.
