De-Tax: Not filing returns on time?

The end of the financial year 2017-2018 is also the last day to file the belated tax returns for the last two assessment years. For those who have failed to file their income tax returns for the past years, it is important to adhere to the deadline as prescribed by the I-T Department.

Belated tax return — what does it mean?

Filing an income tax return after the original due date is called filing a belated return. The returns for FY 2015-16 and FY 2016-17 should have been filed in the following year, with the original due dates being July 31, 2016 and July 31, 2017 respectively. However, due to the extensions given to the taxpayers by the provisions of law, a belated return for the same FY can now be filed by March 31, 2018.

Now, we know that we can file this return. The million dollar question is, why should we?

Being tax-compliant has many benefits. Filing your ITRs can be of great use when you apply for loans. Banks can easily reject a loan application if the applicant does not produce the ITR receipts for the last three years. Filing timely returns is important for visa processing. Taxpayers whose tax returns are immaculate can also easily register immovable properties in their name. Credit cards may not be issued if your tax returns are not complete. And, if you wish to have the folks at the I-T Department on your side, filing your tax return on time is a good way of going about it.

How can one file their belated tax return?

The process for filing your belated return is the same as when you file the return on or before the due date. While filing online through any tool, it is always important to choose the correct assessment year for which you are filing the belated return.

The writer is founder & CEO, ClearTax

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