Return filing everyone !!! the earlier we file better for us. But most of us delay it till last few days left. It’s better to file the return of income before 31st July. Maximum number of people think that since we have paid our taxes what’s the point of filing return of income before the due date. This attitude is not correct, even our taxes have been paid off still we should e file our return before 31st July as we might lose certain benefits.
Firstly, if you have filed some information incorrect you can file revise return and file it before the due date of filing.
A revised return u/s 139 (5) can be filed before the expiry of 1 year from the end of assessment year or before the completion of assessment whichever is earlier. Like if you forgot to add some income or forgot to take some deductions applicable then you can file revise return and claim it.So late filing will attract penal provisions.as belated return cannot be revised.
But wef 1-4-16 belated return u/s 139(4) can now be revised. However return filed under notice u/s 142(1) cannot be revised.
Secondly, interest on refunds is lost by late filing of return of income.The interest is calculated from 1st day of April of the assessment year to the date on which the refund is granted, if the return of income has been furnished on or before due date specified u/s 139(1). If the return is not filed before due date of filing the interest on refund will be granted from date of furnishing return of income to date on which the refund is granted.The rate of interest will be 1.5% per month or part of month comprised in the period from the date of furnishing of return of income or payment of tax whichever is later.
Thirdly,there can be carry forward of losses if there is return of income is filed.Only house property loss and absorbed depreciation can be carry forward. Losses under head business income, speculation business, Capital loss and loss under running and maintaining of horses cannot be carry forward.Hence person who have such business loss or capital loss should file return of income before the due date.
Fourthly,if there is no filing of return of income before the end of the relevant assessment year then u/s 139(1) then penalty of Rs 5,000 may be asked to pay by the income tax authority.
For senior citizens who have taxable income less than basic exemption limit then after filing the return any tax deducted on the interest income on FD’s etc then refund can be claimed on such TDS deducted.
Thus efiling has made the process very easy in order to avoid last day crash of the website it is better to file return of income before due date and avail the benefits as above.
Want to know how to be SAFE FROM INCOME TAX NOTICES? Just give a missed call on Filing Mantra helpline +91-9533990091 or Email to email@example.com, to schedule a call with our tax experts. Filing Mantra offers FREE tips and best practices on how to save tax, be compliant and safe from income tax notices.