Income tax returns filing: Do not expect another deadline extension; why you need to file it now

Saturday, 5 August, is the final deadline to file your income tax returns (ITR). This is an extension of the 31 July deadline. And now there’s very little chance that it will be extended again. First of all, be clear that you can file your returns even after you miss the 5 August deadline. And there is no difference in the procedure while filing your returns late. You will have to though choose the option ‘Return filed under section 139(4)’ in your ITR form. If you are, using an online portal which populates the data automatically, you will be prompted to choose this option.  However, there are various reasons why you shouldn’t miss this deadline. If you have deposited cash in your bank accounts over Rs 2 lakh after demonetisation, between 9 November and 30 December last year, it’s even more important that you file it now. Else, you might just come under the taxman’s radar. If you file your return after the deadline, you won’t be able to carry forward any kind of losses such as capital loss and losses from businesses etc. Keep in mind, losses incurred from house property is not included in this rule. The most important thing to remember here is that even if you were paying taxes on time, you won’t be able to carry forward the loss. Another thing is you won’t be able to claim refunds payable to you by the tax department on any advance taxes or TDS paid by you. If you owe some tax, and you miss tomorrow’s deadline, you will have to pay a penal interest. There is no penalty this time for late filing. However, from next year onwards, a fine of Rs 10,000 will be slapped. Let’s face it, the department seems to have more teeth now than before. Do you really want to waste your time dealing with a taxman? So always better, meet the deadline. File it now, if not done yet.