The tax department pays interest for the period beginning the date of filing up to the date of issue of refund. The taxpayers also lose out on interest on refund if the return is not filed on time. These prosecution proceedings are launched under Section 271 F,” Kumar said. However, no prosecution is launched if the return is filed before expiry of the assessment year. For the amount below Rs 2.5 lakh, taxpayers can be prosecuted for 3 months up to 2 years. “If tax of more than Rs 2.5 lakh is due and the return has not been filed, the taxpayer can be prosecuted minimum for 6 months and maximum up to 7 years. However, beyond that a penalty of Rs 5,000 is levied. If no tax liability is due but the income tax returns has not been filed within the stipulated time, no penalty will be levied provided the return is filed within the same assessment year. However, based on judicial precedence, while one can’t carry forward the loss of the financial year for which the assessment is being done, losses before that can be carried forward.įurther, if the taxpayer files return after the due date, he may have to pay interest and penalty. For instance, many taxpayers complained that they were unable to upload XML files having figures with decimals,” Kuldip Kumar, executive director, PwC, told The Indian Express.įiling return within the stipulated deadline Emphasising that the taxpayers should meet the extended deadline of filing the e-returns, he said that by not filing return on time they may lose out on various benefits including carrying forward of losses incurred during the financial year for which the assessment is being made.Īccording to the Income Tax Act, one can’t carry forward the loss if he has not filed the ITR on time.
“The extension of deadline would help all such taxpayers who had all the information but couldn’t file returns due to technical glitches.