What will happen if I am not able to file my IT return before the due date?

Due date for filing the tax return

Currently following two due dates for all type the tax assessee:

  1. 30th September for:

    1. A Company
    2. A person (other than company) whose accounts are required     to be audited under any law for the time being in force
    3. Working partner of a firm whose accounts are required to audited
  2. 31st July for all assessee other than mentioned above i.e Individual, HUF, BOI, AOP etc.

You can file return before the end of assessment year (i.e. 31st March 2010) without any penalty and you can file return one year after the end of the assessment year with penalty of Rs.5000/- (i.e. 31st March 2011)

Impact of late filing of Income tax return & issues related to due date.

  1. Interest u/s 234A: If there is tax due after deducting advance tax ,TDS and self assessment tax than interest will be applicable @1% per month and part thereof up to the date of filing of the return besides interest applicable u/s 234B or 234C.Means this interest is applicable only if there is any tax payable in your return .
  2. Loss of Interest on refund: You may lose interest on refund u/s 244A as delay in filing is attributable to assessee for the period by which you have filed late return.
  3. Audit Report: Person who are liable to get their accounts audited should get the audit report on or before the due date of filing return i.e 30.09.2009. Audit repot is only to be prepared and not to be filed any where. In simple word or boldly we can say that if audit report has been signed before 30.09.2009 that is enough, you can file return late and report particulars will be filled when ever you filed your income tax return. This is as income tax circular no 5/2007 point no 6 (read full circular)
  4. Revised return: Late/belated return can not be revised.
  5. Not able to carry forward the losses under various heads: You are not able to carry forward following type of losses if file return after due date:
    • Speculation loss
    • business loss excluding loss due to unabsorbed depreciation and capital exp on scientific research
    • short term capital loss
    • long term capital loss
    • loss due to owning and maint. of horse races

    However there is no impact on following type of losses even if return is furnished after the due date:

    • loss from house property
    • business loss on account of unabsorbed depreciation
    • capital expenditure on scientific research.

    So if you are ambit of the above three points then you should furnish your return up to 31.07.2009 or 30.09.2009 as the case may be without any penalty.