What is the significance of this buzz about filing ITR by 31st July? Is it the last date? All of us face many such questions and are puzzled that if we do not file ITR by 31st July, what will be the implications. Here is a summary.
To whom this due date is applicable?
So far as individuals are concerned, this date is the specified due date for those who have income other than income from partnership firms as partners and should be complied with so far as possible.
What if you cannot file due to some reason?
The implications of non filing are :
1. If some tax is payable even after deduction of TDS / payment of advance tax by you, penal interest would be charged @1% p.m. from the due date of filing to the actual date of filing. This interest u/s 234A is in addition to interest already being charged for short payment of TDS / advance tax u/s 234B and 234C.
That means if no tax is payable and entire tax liability is discharged either through TDS or through advance tax, there is no issue except the one mentioned below.
2. The ITR can be filed even after 31st July due date but this would be considered "Late or After Due Date" and this Late ITR cannot be revised if you identify some income is misreported / not reported.
3. There is another implication that if you have any loss under any head of income such as Business Income, Capital Gains etc., and if you fail to file return before 31st July, the loss cannot be carried forward for set off against income of future years.
Hope this enables you to take informed decision about the pressure which you should take to file it by 31st July.
These are my personal views and should not be considered as legal advise. You are requested to consult a professional before acting on this blog.
To whom this due date is applicable?
So far as individuals are concerned, this date is the specified due date for those who have income other than income from partnership firms as partners and should be complied with so far as possible.
What if you cannot file due to some reason?
The implications of non filing are :
1. If some tax is payable even after deduction of TDS / payment of advance tax by you, penal interest would be charged @1% p.m. from the due date of filing to the actual date of filing. This interest u/s 234A is in addition to interest already being charged for short payment of TDS / advance tax u/s 234B and 234C.
That means if no tax is payable and entire tax liability is discharged either through TDS or through advance tax, there is no issue except the one mentioned below.
2. The ITR can be filed even after 31st July due date but this would be considered "Late or After Due Date" and this Late ITR cannot be revised if you identify some income is misreported / not reported.
3. There is another implication that if you have any loss under any head of income such as Business Income, Capital Gains etc., and if you fail to file return before 31st July, the loss cannot be carried forward for set off against income of future years.
Hope this enables you to take informed decision about the pressure which you should take to file it by 31st July.
These are my personal views and should not be considered as legal advise. You are requested to consult a professional before acting on this blog.
For any query / suggestion on my blogs, feel free to write to me at piyushsgarg@gmail.com.
I think it will be better if you start posting videos also. A lot of financial complexity arises from different terms used and you can clarify them. Also all the forms etc. can be explained in detail!!! Great work anyway
ReplyDelete