Income Tax: Failed to file ITR yesterday? File belated return now

The last day to file Income Tax Return (ITR) for the financial year 2016-2017 was yesterday. But, if you have missed the deadline, you can still do it. 

Many people fail to file their income tax return within the due date as prescribed by the income tax department. There is a provision in income tax for late filing of income tax return which is called belated return.

What is belated return?

As name suggests, filing ITR after the due date is called belated return. It can be filed before the end of the assessment year. However, this period was changed in Budget 2016. Before Budget 2016, belated return can be filed within one year from end of relevant assessment year.

This change will be applicable from Assessment year 2017-18 and subsequent years.

It means if you want to file the return for FY 2014-15, the relevant assessment year is 2015-16 and so return can be filed till 31st March 2017 and likewise if you want to file the return for FY 2015-16 ,the relevant assessment year is 2016-17 and so return can be filed till 31st March 2018. But if you want to file the return for FY 2016-17, the relevant assessment year is 2017-18 and so return can be filed till 31st March 2018 only.

Which means, if you have not filed ITR for FY16-17, you can still file it till March 31, 2018.

How to File Belated Return?

When you are filing the belated return, the procedure is same as if you file the return on or before the due date. You need to select ITR form applicable to you and fill the form in the same manner as if you are filing the return on time and Choose the assessment year for which you are filing the belated return for eg if you are filing the return for FY 2015-16 select 2016-17 as assessment year. 

Penalties

Yes, a taxpayer will have to pay penalties if there are any taxes which are unpaid. If there are any taxes which are unpaid, penal interest @ 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. 

Also, 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.

Hence, if have still not filed ITR till now, file it today to avoid monthly penalties.

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