Goodbye belated income tax return! – Income Tax Rules are now changed. You cannot file old Income Tax Return. You might have received an SMS from the Income Tax Department saying – “You have not filed the ITR for AY 2017-18. The law has changed and ITR for AY 2017-18 cannot be filed after 31-03-2018. Please ignore if already filed.” This means as per new income tax rule, 31st March 2018 is the last date to file income tax return of AY 2016-17 and AY 2017-18.
What is Belated Income Tax Return?
A Belated Income Tax Return means regularization. In a simple word Filing income tax return after the due date is called filing a belated return.
The facility of Belated Income Tax Return was extended for the convenience of taxpayers. However, this facility is misused by many people. There are cases where belated return facility was used to create income proofs (white money) at a later stage.
Let me explain via example –
You must be aware that It is mandatory to provide last three-year return, in case an individual wants to apply for Loan. If previous income tax returns were not filed, It was easy to file it using belated return facility. This facility is withdrawn from 31st March 2018.
So, if you have not filed your income tax return and you are planning to take some loan or want to make provision of income proof for future requirement you must act now. At a later stage, if you are in need for last three years return you may have to wait up to 2020.
Also Read – Income Tax Calculator Download FY 2018-19
How to file Belated Income Tax Return?
The process of filing belated income tax return is same as if you are filing a return before due date.
- Select applicable ITR form.
- Fill up ITR form. Please make sure you select assessment year carefully.
- Fill up your income and deduction detail.
- Generate XML file and upload it.
You will need PAN card, Aadhaar card and Account statement or Form 16 for filing income tax return. It is advisable to compare TDS entry in form 26 AS before filing return.
Consequences of not filing Income Tax Return –
In short 31 March, 2018 is the deadline for filing of belated returns for both AY 2016-17 and AY 2017-18. If you fail to file a return before this date you have to take permission from Income tax officer for filing belated income tax return. If income tax officer permits you for filing return you can file a return.
You need to give reason to income tax officer for not filing a return on time. In addition to that, you need to pay Rs.5000 penalty for pending return of every year.
Also Read – 25 Common Income Tax mistakes to avoid while filing ITR
Conclusion –
File your income tax return before due date failing to which, you need to face a lot of problems. In addition to that, you need to pay penalty for late filing and interest on due tax amount.