July 31 is the last date to file your tax returns. If your income is above the taxable limit of Rs 2.5 lakhs per annum, you need to file your tax returns. Here is what could happen if you do not file your tax returns by July 31, 2016.
There would be a penalty that would be applicable, if you are not able to file your tax returns by July 31, 2016. The amount and whether to levy a penalty would depend with the assessing officer.
You cannot change your tax returns
The deadline is July 31, so if you have filed the returns before that, you can make changes to your tax returns. After that there is no scope to make changes to your tax returns.
Issue of notice
The Income Tax Department would issue you a notice, especially if your income has crossed the threshold limit of Rs 2.5 lakhs per year.
A charge of 1 per cent
In case there was a tax demand from the authorities and they are right to make claims, you would have to pay a charge of up to as much as 1 per cent per month, until you file your tax returns.
You want get to carry forward losses
If you have made a capital gains loss, it cannot be set-off against profits in the subsequent year. This is especially true, if you have profits on sale of shares.
Visit a professional if you get a notice
While, this is not a consequence of late filing, it is just a suggestion. In case you do receive a notice for not filing, visit a professional, particularly a Chartered Accountant, who can take up matters.
He may be able to address matters with the assessing officer better.
Last day for filing tax returns
Remember, the forms have been notified and the last day for filing tax returns is July 31, 2016. In the previous year, not the last year, the IT authorities had increased the time limit. There is no such notification as such till now for the FY 2015-16