Consequences of missing 31 July 2019 due date

If the return is not filed by the due date, i.e. 31st July 2019 by those to whom 31st July due date is applicable., individuals can still file a “belated return” by 31 March 2020. However, they will face the following consequences:

 

# Interest: If there is a tax payable by the individual even after reducing the tax deducted at source by the employer on salary income and by the payer of other personal income, the same is required to be paid as advance tax. Shortfall of advance tax (if any) is payable as self-assessment tax along with applicable interest on the due amount up to the date of payment of tax. If this self-assessment tax is paid only at the time of filing the return or belated return, the above interest will keep on increasing up to the date of payment of tax.

 

# Late Filing Fees: If the taxpayer fails to file return of income within the due date, s/he will have to pay late filing fees as per the below table:

 

Return Filing Date                 Late filing Penalty
Total Income below INR 5,00,000 Total income above INR 5,00,000
Up to 31st July 2019 INR 0 INR 0
Between 1st August 2019 to 31st December 2019 INR 1,000 INR 5,000
Any Other case INR 1,000 INR 10,000

 

# Carry forward of losses: Taxpayers are not allowed to carry forward certain losses. For instance, losses under the head capital gains are allowed to be carried forward for adjustment against the future gains only if the tax return is filed within the due date.

 

# Prosecution for not filing: ​Non-payment of tax attracts interests, penalty and prosecution. The prosecution can lead to rigorous imprisonment from 3 months to 2 years (when the tax sought to be evaded exceeds Rs. 25,00,000 the punishment could be 6 months to 7 years).​​

#Deductions that can be claimed

If one has missed submitting investment proofs to the employer, it need not be a cause for concern. one can claim deductions of investment made during the year at the return filing stage. For example: specified payments like life insurance premium, deposits made in Public Provident Fund, NPS, tuition fees, etc., are eligible to be claimed as deduction at the return filing stage. These deductions are subject to the prescribed caps.

Further, individuals can also claim income deduction for the interest payment made on the housing loan up to a maximum amount of Rs 200,000 (assuming loan has been taken for purchase or construction) of self-occupied property. However, there is no such maximum limit for the interest payment deduction if the property is let out. If there is a loss after adjustment of rental income, maximum loss of Rs 200,000 can only be adjusted in the current AY and the remaining will be carried forward for adjustment in future years.

#Form 67

If the individual has claimed a foreign tax credit in his India tax return, tax authorities will allow the same only if Form 67 is furnished. This form is in addition to the filing of income-tax return. To access this form, individual is required to log in into the e-filing portal using valid credentials. This form is required to be furnished on or before the due date of filing return of income.

#Aadhaar number

Every person who is eligible to obtain Aadhaar number shall provide Aadhaar details in the income tax return form. If you have not received your Aadhaar card yet but have applied for it, then you would be required to provide the enrolment ID in your tax return.

Once the return is filed, acknowledgement form ITR V is generated. This form needs to be verified either manually (by signing and sending to the tax authorities) or the same can be done electronically. One of the electronic verification options is through Aadhaar OTP, where an OTP is sent to the mobile number linked with the Aadhaar card.