Wednesday, August 5, 2009

31 July is Due date & NOT the Last date

Every individual tax payer thinks 31 July is the last date of filing income tax return. This year there has been some mis-communication from income tax department as well stating July 31 is the last date of filing returns. The same was rectified and communicated in news papers.

The last date of filing income tax returns is 31 Mar and due date of filing income tax returns is 31 July.

There are few facilities which is not available for late returns (returns filed after 31 July). These are the impacts of late filing:
1. Interest: You will be liable for penal Interest u/s 234A @ 1% per month on the amount of tax due from the due date of filing returns.
2. Carry Forward of Losses: Losses like Business Loss (speculative or otherwise), Capital Loss (short term or long term), and Loss from owning and maintaining race horses are not allowed to be carried forward. Other losses, if any can be carried forward.
3. Revision: Late returns cannot be revised except if it is in pursuance of a notice under section 142(1)
4. Deductions: Deductions u/s 10A, 10B, 80-IA, 80-IAB, 80-IB and 80-IC are not allowed

Generally most of the individual tax payers under ITR1 and ITR2 category, donot have any losses to be carried forward. When you use eLagaan to prepare your tax returns, you can be assured of perfect returns, so no need to revise a return. So go ahead and prepare your tax returns for FREE at eLagaan without worrying that you have missed the 31 July deadline.

Remember 31 July is the due date and NOT the last date to file your returns.