Missed filing your tax returns last year? Act now
CBDT is looking for non-return filers. But those who haven’t been able to file tax returns for AY 13-14 can still do so.
Did your busy schedule in July 2013 leave you with no time to file your tax returns? The end of this month is your last chance to file the tax returns missed for the last two deadlines – July 31, 2012 and July 31, 2013.
The Income Tax department allows taxpayers to file returns till the end of the assessment year without paying a penalty, if all taxes have been paid. It is in your interest not to miss this deadline, as the Central Board of Direct Taxes (CBDT) is on the lookout for non-tax return filers.
“In the first round of data matching, 12.19 lakh non-filers were identified. Letters have been sent. More than 5,36,220 returns have been received, apart from collection of self-assessment tax of Rs1,017.87 crore,” says Dr B K Sinha, Commissioner of Income Tax (C&S), CBDT.
The process doesn’t end there. “The Tax Department would continue to pursue the non-filers vigorously,” Sinha stated, adding that additional 21.75 lakh potential non-filers have been identified.
Instead of receiving a notice and then filing the returns, be proactive and file before March 31, 2014. Tax returns for the income earned in financial year 2012-13, can be filed by March 31, 2014, without paying the Rs5,000 penalty. There is a provision, wherein you can file your returns for income earned in 2011-12 too, albeit after bearing the late-filing penalty of Rs5,000.
However, keep the following in mind while filing late returns.
1. If taxes are yet to be paid then you will have to pay additional 1% penalty for each month starting April 2013.
2. In case of advance tax, non-payment penalty will be applicable from the tranche deadline (30% by July 15, 60% by December 15 and 100% by March 31) when the advance tax should have been paid.
3. Returns of Income earned in FY 2012-13 can be filed upto March 31, 2015. But then a late-filing penalty of Rs5,000 would have to be paid. So, file your returns by March 31, 2014 to avoid paying Rs5,000.
You would lose out on certain benefits for filing returns by March 31, 2014 instead of the original deadline of July 31, 2013. Here’s a quick list of things to bear in mind while filing late returns.
1. Revision of returns is not permitted if you file returns late.
2. You can save money by acting now and paying your taxes.