If you have missed the previous income tax return (ITR) filing for last year, you do not need to worry about this. You can still fill your income tax return.
A filling a tax return after the due date is called as the ‘Belated Tax Return’.
However, there are some points that you need to understand before you apply for this last chance. Following are the amendments for Finance Act, 2017, but filing a belated return can cost you more, you have to pay a penalty for last year.
• What is a belated tax return?
If someone fails to file their income tax return before the due date of filing, then as per the income tax Act, he can file a tax return after the due date is known as the belated tax return.
• What is the deadline to file belated ITR?
Your belated return can be filed before the end of the relevant assessment year or before finished of the assessment. If you want to file a belated return for FY16-17, then you have to fill the applicable tax return as notified for this FY, and not of a previous or later FY. The relevant assessment financial year is an immediately succeeding year of the financial year.
• What happens if I file belated returns?
You will need to pay a penalty for late tax return and you will also lose some benefits for not adhering to the income tax filing deadline. Some disadvantages of filling a belated tax return:
Until the last annual year, there were no penalties for filling the late tax returns. Now the penalty is applicable for late filing. As per this section, you would have to pay a fee for filling ITR after due dates.
2) Cannot carry forward loss:
If you are filling a belated tax return you cannot carry forward losses. You will lose from the following incomes such as income from business, speculation business, capital gain and other outsource income, cannot be get carried forward in a belated tax return.
3) A demand of interest on the belated tax return:
In case of you file a belated return, It is important to know that if you have unpaid tax return then penal interest on it would be liable. If the IT department assesses your return and raises demand for additional tax payment then you have to pay penal interest on it as well as an additional tax. Thus it is the suggestion to file your tax return on time.
• Tax Returns Services:
When you are looking for tax return services, you will get top service from our friendly staff of accountants and professionals. We will happily help you out from your solutions through email, call and SMS. Request a consultant through our website https://www.mansellassociates.com.au/ and give us a chance to get started.
Get following services through Mansell Associates for filling your tax returns:
- Income Tax Return Preparation and Advice
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