In case you are not aware of the changed rules on belated tax return filing, here is again a reminder as if you miss the March 31, 2018 deadline for filing the return for the FY 2016, it may well be the case that department slaps a notice on you.
Belated tax return filing is allowed to a taxpayer until the end of the assessment year of the particular financial year. Say for instance, a salaried individual who needs to file the return for a particular FY by July 31st of the following year is allowed an additional timeframe or window of filing return until March 31st of the next year.
1. In a case when the department issues notice to the taxpayer for not filing belated return and even after it the returns are not filed, the AO on the basis of available data and facts may take a call on an individual's likely income and raise tax demand if any.
2. The department may also ask the individual to file the return by issuing a notice and the assessee then has to submit the penalty amount along with the interest on the outstanding tax liability.
It is also to be remembered that belated return filed for the FY 2015-16 (AY 2016-17) is not allowed to be revised. But the rules have now changed and henceforth allow revision of belated returns filed with the dept.
Experts now warn individuals to be extra cautious in respect of tax return filing deadlines as the norms have now changed to become stringent with lesser window and higher penalties.
For FY 2017-18 i.e AY 2018-19, if the individuals do not file returns by July 31, 2018, they will have to bear an additional penalty of Rs. 5000 until December and further upto March 2019 the penalty will go upto Rs. 10000.