Income Tax Return (ITR) filing deadline extended; Good news? Taxpayers missing this big point
The CBDT extended the deadline for filing Income Tax Return (ITR) and audit report for the financial year 2017-18.
Once again the CBDT has extended Income Tax Return (ITR) filing deadline from September 30 to now October 15. This comes as a big relief for taxpayers who have not yet filed their ITR. While taxpayers believe it is a few days' breather in filing ITR, however, there are certain sections that they are missing, which acknowledges how important it is to file ITR on due date. Firstly, it needs to be noted that, the current extended deadline is for companies. The CBDT extended the deadline for filing Income Tax Return (ITR) and audit report for the financial year 2017-18. The regulatory decided to extended the deadline after consulting all the stakeholders.
According to ClearTax, “However, income tax due, if any, must be paid by 30 September to avoid interest under Section 234A.”
Interest under section 234A is levied for delay in filing the return of income. In other words, if the taxpayer files the return of income after the due date specified in this regard, interest under section 234A will be levied.
Simply put, even if the due date for submission of tax return has been extended until October 15, if you have any unpaid tax liability which is subject to interest under section 234B of the Act, you should pay the same by 30 September to save one-month interest liability.
Let’s suppose you have filed your ITR after September 30, then you are liable to pay interest under section 234A on the outstanding tax liability.
So what we learn is that, no matter when you file ITR either be in any days of October even before the latest deadline ends, the exact due date for filing ITR would still be September 30. And if any filing made after the deadline you fall under the bracket of section 234B.
Interest under section 234A is levied for delay in filing the return of income. Interest is levied at 1% per month or part of a month. The nature of interest is simple interest.
In other words, the taxpayer is liable to pay simple interest at 1% per month or part of a month for delay in filing the return of income.
For example, you have tax outstanding of about Rs 2 lakh and you decide to file ITR on October 15 instead of September 30 of the assessment year. You are now 15 days late in filing your ITR. Notably, the 15 days period will still be treated as 1 month.
Therefore, 2,00,000 x 1% x 1 (month) = Rs 2000. This Rs 2000 is over your tax amount which you will be paying in any case under section 234B. The more you delay, the higher the interest amount would be.
Interest under section 234B is levied in following two cases: a) When the taxpayer has failed to pay advance tax though he is liable to pay advance tax; or b) Where the advance tax paid by the taxpayer is less than 90% of the assessed tax (meaning of assessed tax is discussed later).
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02:25 PM IST