Income Tax Returns (ITR) filing deadline: Did you miss it? Rush now, or face penalty; check 5 step guide

Income Tax Returns (ITR) filing deadline: The government last year had extended the income tax returns (ITR) filing due date from July 31 to August 5. Despite being aware of the extension, a lot of people for some reason failed to file their returns. If filing of returns for the assessment year (AY) 2017-18 has been missed, then it must be done as soon as possible. However, it is not the end of the world and there is still an opportunity to file it. A delayed ITR filing is known as belated ITRs. It must be filed before the end of the relevant assessment year, which is on or before March 31, 2018.

Filing a belated ITR leaves you prone to a possible penalty from the I-T Department. Unless you have a genuine reason for a delayed ITR filing, the tax officer holds the right to impose a penalty of up to Rs. 5000 for missing the deadline. From April 1, 2018, the penalty has been fixed at Rs. 5000 for all delayed ITR filings before Dec 31, 2018 and for earnings above Rs. 5000. However, the penalty has been set at Rs. 10,000 if the ITR is filed after Dec 31, 2018. Those earning below Rs. 5 lakh will have to pay a penalty of Rs. 1,000 for a delayed ITR.

If you are liable for income tax, a belated filing means that an additional interest on the tax amount due under Section 234A of the I-T Act will be levied. A simple interest of 1% per month is levied on the due tax calculated from the first day after the last date of the ITR submission. Filing a belated ITR also means that you are not permitted to carry forward any losses from the sale of capital assets. Additionally, no interest is paid on any tax refunds from the I-T Department in the event of a tax refund. Another drawback of filing a belated returns is that you lose the chance of revising your return if there is a need.

How To File A Belated ITR

If you have missed filing your income tax returns by the July 31 deadline for the assessment year (AY) 2017-18, follow these simple steps.

Step 1:You will need to visit the official e-filing website of the I-T Department at https://incometaxindiaefiling.gov.in/

Step 2: Use the 'Login Here' tab and enter your username, password and captcha code to enter the dashboard.

Step 3: Click on the 'e-file' tab on the dashboard choosing the option of 'Prepare and submit online ITR'. Choose the relevant ITR form and assessment year 2017-18 for filling your belated ITR. 

Step 4: Once your ITR is prepared, select the 'return filed under section 139(4)' option in the drop down menu for successful submission. 

Step 5: Once your ITR has been submitted you can choose how to verify your return. You canchoose Aadhaar-based OTP e-verification.

Although you still have a chance to ensure you can do your income tax returns (ITR) filing, this should not be an excuse to miss the filing deadline as it has its own set of limitations taht can be very severe.

(By Adhil Shetty, CEO, BankBazaar)