July is perhaps one of the busiest months for the IT department. July 31 is the last date for the filing of Income Tax Returns, and almost all of us will be running behind our Chartered Accountants and HR managers to get our papers in order. This year, the deadline of 31 July takes on more meaning than usual.
All these years, income tax assessees have had the option of filing a ‘belated’ return.
However, starting this year, there will be a hefty late fee if you don’t file your tax returns before July 31.
Here are the changes that you must be aware of while filing your taxes this financial year.
1. Penalty on late filing of returns
If you file your returns post the deadline of July 31, you will be liable to pay a maximum penalty of Rs 10,000.
As per the new law, a penalty of Rs 5,000 will be levied if the return is filed after the due date but before December 31 of that year and Rs 10,000 post-December 31.
In case your income is below Rs 5,00,000 a year, the late fee is capped at Rs 1,000, irrespective of when you file the return.
2. Revision of data entered in your return form
If you make a mistake in your form, then you will have time until March 31, 2019, to revise the same.
Until this change was made, the taxpayer was allowed to revise his returns up to two years from the end of the financial year for which the return was filed. So do make note of this change.
3. Faster processing of loans, credit cards
One of the advantages of filing your returns in time is that it acts as proof of the income you earn. Therefore, in case you wish to apply for a loan or a credit card, this acts as a proof document. Additionally, paying your tax on time adds to your credentials as a trustworthy and law-abiding citizen. Tax papers are also required by embassies of many countries for assessing your financial status before issuing visas.
4. File your returns even if you do not draw an income
Even if you do not have an income that is taxable, it is advisable to file a ‘Nil’ Income Tax return. As mentioned earlier it adds credibility and will help you in case you need to avail a loan.
For more details on how to file your income tax returns, log on to the official portal here.
(Edited by Shruti Singhal)