As per provisions of Income-tax Act,1961 every assessee shall file his return of Income on or before the due dates for filing the returns. The deadline for filing Income-tax returns for the Financial year 2020-21 (Assessment Year 2021-22) is as follows :-
|Type of the Assessee||Due date for filing|
|Assessees whose accounts are not required to be audited (Salaried employees, Pensioners, people with only House property or Interest income from investments, Business cases not covered under audit)|
30th September 2021
|Assessees covered under audit requirements (Other than Transfer pricing cases)||30th November 2021|
|Transfer pricing cases||31st December 2021|
|Filing belated (or) revised returns||31st January 2021|
|Filing tax audit reports (other than transfer pricing audit reports)||31st Oct 2021|
|Filing Transfer pricing audit report||30th Nov 2021|
What happens if you dont file your returns on time?
Levy of Late fees u/s. 234F
- The first and foremost consequence of late filing is levy of Late filing fees under section 234 F for filing Income-tax returns belatedly.
The late filing fees payable is as under
|Filing date||Total Income below 5 lakhs||Total Income above 5 Lakhs|
|Upto 30th Sept 2021||Nil||Nil|
|1st Oct 2021 to 31st Dec 2021||1000||5000|
|1st Jan 2022 to 31st Mar 2022||1000||10000|
Carry forward & Set off of Losses
If you have any losses under any head of income and you are filing your income-tax return after the due date, you wont be able to carryforward the losses and set off the same against your income in the subsequent years. However, House property loss can be carried forward.
Interest on Late filing of Returns under Section 234A
Another additional burden for late filing is levy of Interest @ 1% per month on the final tax payable , if the filing is not done on or before the last date for filing returns.However if your final tax payable is NIL or refund, this interest will not be levied.
Delay in Issue of refund due
Going by the past experience, refunds due , if any , will be first issued to cases where the income-tax return is filed on or before the due date. The issue of refunds for belated returns will normally get delayed. Hence it is better to file your returns on time.
Benefits of filing your Income-tax returns on time
Loan application and approvals
If you are applying for any loan (Housing Loan, Vehicle Loan, Personal Loan etc.,) filing your returns on time will give you a weightage in processing the loan applications. Moreover for businesses enjoying credit facilities with banks and financial institutions, the timely submission of returns and financial statements will ensure seamless continuity of their existing facilities.
Carry forward of Losses
If any of the Heads of Income is loss (or) your final income declared is a “Loss”, filing your returns on time will entitle you to carry forward such losses to the subsequent year and you will be able to set off the losses of the current year with the profits earned in the subsequent years. If the returns are filed belatedly, you wont be able to carry forward your losses.
Additional Interest on Refund
If the returns are filed on time, the refund due payable to you will be entitled to Interest on refund from 1st April of the Assessment year onwards. However, if the return is filed belatedly, the interest on refund will be calculated only from date of filing and not 1st April.
For example for the Financial year 2020-21, if there is a refund due and you have filed your return before due date, interest will be calculated from 01st Apr 2021 till the date of issue of refund. If you file your return belatedly, say 31st Oct 2021, Interest on income-tax refund will be calculated from 31st oct 2021 only. You will stand to lose interest from 1st Apr to date of filing.
Hence it will be beneficial to you if you file your returns on time.
Avoid Penalty & Prosecution
Filing return of income will ensure that you avoid penalty & prosecution by Income-tax authorities and ensure peace of mind.
Your filed Income-tax returns and Financial statements will serve as an Authentic Proof of your Income. This can be useful more particularly to establish your income for the purposes of Loans from banks & financial institutions , Government Tenders, Mergers & Collaborations and registration as a Vendor with multinational corporations.