Why should we file Income Tax return on Time?

Why should we file Income Tax return on Time?

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As per income tax act 1956, if the income of any person exceed the basic exemption limited limit of income tax act. Then he or she is required to file his/her income tax return according to the time limit specified in the section 139(1).

Last dates for filing income tax return for income tax assessment year 2013-14 are as follows:

  

1. 31st July 2013: for the person whose account need no to be audited.

2. 30th Sept 2013: for the person, firm or company whose account to be audited. 

Now the big question is that if we not file return on due date that what is the loss?

Some are as follows: 

A. As per the section 234A of income tax act, if a person have not paid his tax liability on or before due date mention u/s 139(1), the person need to paid off it all liability with interest. The rate of interest on the same is 1% per annum.

1. But as the interest is calculated on tax amount and tax amount is calculated after deduction of TDS, TCS and Advance tax. So if o tax is due on you then there is no interest also 

2. In simple words if you already paid you tax dues through TDS or TCS or Advance tax, then you need not to worry, no interest will be applicable.

B. As per section 139(1) of income tax act 1956, if you find any omission, mistake or missing information in the return or any other reason, then you can revise your income tax return. But the revision is only possible if you have filed the return according to section 139 (1).

C. Set off and carry forward of losses: if you current year income contain loses from business or profession or from capital gain or House property then you can carry forward the same amount of loss to next assessment year and setoff the amount against that year income.  But this benefit is available only if you have filed you income tax return according to the section 139(1). 

D. If still you have not file the return on due date then you need to file it by 31st march 2014, otherwise you will be levied a penalty of Rs 5000/- u/s 271F.

 So submit you return on time and save money.