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Failed To File Income Tax Returns? Here Is What You Should Do !

Normally salaried tax payers get their tax amount deducted from their salaries through Tax Deducted at Source (TDS) before March 30th every year.

But sometimes in our day to day rushes we tend to fail to file income tax returns. What happens if tax returns are not filed? What if the last date of income tax return filling of AY gets missed?

Do not panic. Here is what you should do.


Why, When and What if?

In the beginning, we should understand why you should file income tax returns?

Any salaried person according to Income Tax Act.1961 has to pay an amount of their salary to the government which is named as a tax. The tax amount depends upon the annual income of the individual.


When is the income tax return filed?

Income tax return must be filed before July 30th of every assessment year.

Now, what if I don’t pay income tax in India?

In such case, you tend to receive a notice for not filing of return. It is compulsory for every individual whose total income exceeds the amount maximum not chargeable to tax. You have to clearly mention in reply stating the reasons.

If you fail to give the proper response within the time limit, you may be subjected to pay tax liability along with the penalty and interest.


Basic norms and details

The law allows an individual to file tax returns within the stipulated period of two years from a particular financial year. Hence if you miss filing tax for FY15, then you can do it within FY17.

In cases of capital loss, it cannot be carried to the forward to the next year if income tax return is not filed unlike the loss of property. In the cases of loss of property, it can be further carried to the next year.


Here is what you can do for the following cases:

·        If you do not have an unsettled tax liability: if you failed to file before the deadline, you could still file before two years of existing financial year.

·     In the otherwise case of above, you are subjected to pay 1% per month of simple interest under 234A along with interest under 234B and 234C.

·    If the available due tax is more than INR 10,000, then the individual should have paid an advance tax.

As advance tax is paid in three branches;

30% to be paid by July 15th, 60% by December 15th and 100% by March 31st of the financial year.

·         The above tax if not paid then penalty exists.


Consequences for not filing tax return on time

·         Once due date passes to file the return, you cannot file revised return.

·         You are subjected to pay interest on various sections for the late fulfilment of income tax.

·         You will get no interest in the cases of delayed refund.

·         Losses on capital or shares cannot be carried further to the later years.


Procedure for Filing Income Tax Return after deadline

The procedure for filing income tax returns after the deadline remains same. There is no difference in calculation of income, tax, and deductions.

However, it is mandatory to specify that the filing of return is being done after due date along with an explanation and also pay the penalty if due.

The penalty for non-filling of income tax return in India is money. But there is other few severity which leads to the penalty. They are;


Criminal fraud such as tax evasion, civil fraud or tax fraud and frivolous fraud which further include penalties.

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