Why you should file your tax return by July 31?

Posted on Posted in Income Tax, Income Tax Return, Incometaxefiling

Why you should file your tax return by July 31?

Filing income tax returns is one of the crucial things for all the eligible tax payers every year. The Income Tax department every year asks all the Income tax payers to file their Income Tax returns in the month of July. Likewise every year, this year as well, the IT department has fixed the due date for filing the income tax returns till 31st July, 2016. As the due date for filing the Income Tax Return is being approaching, the Income Tax department is compelling all the tax payers to file their IT returns for the current financial year 2015-16.

Most of the people assume that there will not be any kind of issue with the Income Tax department if you once file your Income Tax returns before the due date within the stipulated time. No hostile consequence will be encountered if the Income Tax Return is filed before the deadline fixed by the Income Tax Department.

However, it is not completely true in fact. Even if you had paid all your taxes correctly and filed your Income Tax returns, you would yet be dropped out specific advantages if you do not file your income tax return within the due date. Here is everything you need to know the reason for filing Income Tax returns before the due date i.e., 31st July. Have a look!

Why you should file your tax return by July 31?

Cannot Revise a Postponed Income Tax Return

According to some official sources, if you file your income tax return for the financial year 2015-16 after the due date you will not have a chance to file a revised Income Tax return well along in case if you notice any kind of error in the originally filed Income Tax return. It will not be possible for you to take a look at your filed IT returns to find out your mistakes if you file IT returns after the due date.

In such a situation, if your error is noticed by the income tax evaluating officer then,your Income Tax return will be cancelled and will not be taken in to consideration. Also, he will notagree for a ‘revised return’ and moreover, the mistake would be penalised according to the rules. Therefore, there is no possibility of revising a return once filed after the deadline July 31, 2016 for the current Financial Year 2015-16.

Loss in interest on Refunds

If in case, you request for a refund in your return of any advance tax paid/TDS, you would eventually lose some of the interest. Currently, the Income Tax department pays an interest of 6% per annum on such kind of refund. Usually, the interest on refund is calculated from April 1 of the assessment year till the date of grant of refund. Even if you file your Income Tax return one day after the completion of the due date fixed by the Income Tax department, you would be losing interest for as a minimum of four months such as April, May, June and July.

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Postponed IT return – Tax Remains Unpaid

If you have any kind of obligation or liability for unpaid tax, filing your Income Tax return after the due date would effect in charge of penal interest of about 1% per month from the due date of filing theIncome Tax return till the actual date of filing your Income Tax returns. This would be a hefty and preventable pay-out. The tax authorities can begin prosecution if the return is postponedfurther than the pertinentcalculation year and the sum of unpaid tax goes beyond Rs. 3,000.

Not Allowed to carry forward of losses

If you file your Income Taxreturn after a due date which means a delayed or postponed return, you will not be eligible to carry forward losses (excluding loss from house property).

If IT return is not filed even by end of applicableFY

If in case, you do not file your Income tax return even by the relevant assessment year i.e., by 31st March and if there are no due taxes, you will be penalised Rs. 5,000 by the tax officials. If you’re incapableofdelivering a realisticreason for the postponement, you will be definitely penalised.

These are the circumstances and causes you will be encountered if your do not file your Income Tax returns within the due date.

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