If a man escapes a taxable income his income is considered as black money and he is accountable for that. It is mandatory for every assessee to file his return and pay tax.
A person can still file his return even when he does not have any taxable income. The income tax department has also specified the due dates within which the assessee has to deposit the tax. The non-compliance attracts penalty.
Due dates of filing return:
The last date for filing income tax return is 31st July every year. The last date for filing income tax return is 31st July every year after the financial year. In case of any other assesses (Individual salaried or other income below audit limit) the due dates for filing of return is 31st July of the Assessment year. In case of assesses who are required to get their accounts audited the due dates for filing is 30th September of the Assessment Year. The due dates for filing of return in case of working partners of the firm whose accounts are required to be audited is 30th September of the Assessment Year.
Importance of filing IT Return:
Filing of I.T. return provides legality to what we are earning. Filing of returns is significant in many ways. Tax Refunds can be claimed. It is also helpful in getting loans whether for house or vehicle or just for applying credit card. Many institutions do not accept the returns filed late as proof of income
Consequence of late filing of Income Tax return:
Specific penalty for late filing of return is prescribed u/s 271F of The Income Tax Act.
Impact of late filing of Income tax return:
A person will not be able to carry forward his business loss. As stated above, many finance companies do not consider returns filed late as valid proof of income and as such may come in way of getting loans or credit card
Penalty for late filing:
Penalty for late filing of return is prescribed u/s 271F of the Income Tax Act. According to the provisions of the section If a person who is required to furnish a return of his income, as required under sub-section (1) of section 139 or by the provisos to that sub-section, fails to furnish such return before the end of the relevant assessment year, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of five thousand rupees.
Further there is no liability for late filing of income tax return up to 31.03.2013 after that assessing officer can impose a penalty of Rs.5000/-