Brace for troubles if you have missed the 7 Sept deadline for returns filing

In case you did not know, 7 September was the extended deadline to file your income tax returns for assessment year 2015-16. And if you know about such a deadline only now, in all likelihood you have missed the deadline. In that case, there are few things which you should know to tide over the crisis.

If you have missed filing the deadline, the next date you need to keep in mind is 31 March. Reason being, if you missed filing returns for 2014-15 or assessment year 2015-16, you actually get time until March 2017 to file them. You read that right - until March 2017. This means you get to file belated returns on or before two years by the end of the relevant financial year. But, this privilege comes with its own set of consequences.

For instance, in case you make a mistake while filing your returns around March 2017, you will not (read it right: will not) be permitted to revise your returns.

That’s not all, you might have to cough up some money as well, in certain circumstances. For instance, If you had some tax dues in the current assessment year and you failed to file your returns on time, you will be liable to pay a penal interest under section 234A at 1 percent per month on the amount of tax due from the due date of filing returns.

In fact, if you are advance tax payee and you failed to do so, you will have to pay a penalty. You have you to pay interest for short fall in payment of advance tax at 1 percent from April until the date of payment of such taxes. Which means, if the advance tax you’ve paid before 15 March is less than the total tax amount then 1 percent per month penal interest needs to be paid from 1 April on the short fall amount at the time of filing returns. Interest for the deferment of advance tax also attracts 1 percent penalty. As per the Income Tax rules, advance tax dates are predetermined: 15 September, 15 December and 15 March.

Even from a refund point of view you are at the downside of advantage. Of course, getting a refund (if applicable) won’t be an issue, but since there’s a delay in filing your returns, it pretty much means, a delay in getting your refund as well.

Missing the deadline will also have an impact on carry forward benefits. You get to carry forward certain losses (for instance, losses incurred due to capital loss on your investments), to the next assessment year. But if you’ve missed the deadline, you won’t be permitted to do so.

Also, remember, even though you miss the August deadline, you don’t need to pay a penalty for doing so if you file your returns by March 2016. But, in case if you miss that deadline too, you might have to shell out Rs 5,000 as penalty.

And finally, banks these days ask for ITR proofs for sanctioning various loans, so if you’ve missed the deadline, and are looking for a loan in the future, make sure you do so as soon as possible. We suggest, you get in touch with your chartered account or a certified financial planner to file your returns and not miss the deadline yet again.