Missed The 'Return' Bus?

Don’t worry this time, but beware of the late fee next year onwards

- Arvind Rao

The term “Return” can be quite perplexing, whether used in context of investments and / or income taxes. As August 5, 2017 passed by, a discussion on Income Tax returns is more pertinent here. Every individual whose total taxable income exceeds the prescribed limit of Rs. 250,000 per year is required to file an income tax return giving details of income earned in the previous financial year and the manner in which the taxes due have been paid. Even if all taxes due have been deducted at source, if the total income exceeds the prescribed threshold, the taxpayer is obligated to file the return

All individuals, whose incomes need not be audited under the Income Tax Act, have to file their return by July 31 (hereafter referred to as “due date”) (which was extended to 5th August this year). All other taxpayers, whose books of account are required to be audited need to file their returns on or before September 30.

A taxpayer reading this article and who has still not filed his/ her returns for 2016-17 (assessment year 2017-18) has definitely missed the deadline. Yet, does this imply that he/ she can no longer file their income tax returns? Or can they file their returns, but will be required to pay a heavy penalty for the same? The Income Tax Act has answers to all of these questions, all the taxpayers need to remember here is that they have only missed the first deadline.

Belated returns – Tick off March 31, 2018