Who Should Not Worry About Filing Return By 31st July??

Who Should Not Worry About Filing Return By 31st July??
31st July is the due date for filing of return by individuals who are not subject to tax audit or who are not partners of a firm which is subject to tax audit. Therefore large numbers of taxpayers or assessee are those individuals for whom due date is 31st July. Every year there is great rush to file return by 31st July. So, income tax department makes special arrangement to receive those returns on last two three days.
It is common perception if the return is not filed within due date, the A.O will impose penalty or interest or do scrutiny. Therefore many people who can file even after 31st July i.e after due date, without any repercussion, rush to file return by 31st July.
So, when can you file return even after 31st July without any repercussion?
• You can file return after 31st July if all taxes have been paid by you as advance tax or deducted at source by 31st March.
• You do not have any loss to carry forward. In case of late return, you will not be allowed to carry forward the loss.
• You do not want to revise the return.
In all these cases, you can file return up to 31st March.
For example, if you are a salaried person and all tax has been deducted at source and no tax is outstanding as on 31st March 2008 for income (salary and other income) earned during FY 2007-08 i.e Asst. Yr 2008-09 who are supposed to file return by 31/7/2008, can file return upto 31/3/2009 without any interest or penalty. And, if they take risk of paying penalty of Rs 5000 for late filing, they can file return upto 31/3/2010!

LAST DATE OF ITR FILING 31-07-2008 OR 31-03-2009

Returns filed after the last date carry a penalty of 1 per cent interest per month on the tax due (if any) i.e., penal interest is charged on tax due minus paid.
And if tax has been deducted at source and the taxpayer does not file returns even by March 2009, a penalty of Rs 5,000 may be levied.
There are TWO types of penalties
1. levy of Interest u/s
234 A @1% pm on the balance tax payable. If tax has been deducted at source then there is no penalty.
234B - @1% pm on the balance tax payable. If tax has been deducted at source then there is no penalty.
234C** @1% pm on the balance tax payable, if tax has been deducted at source then there is no penalty.
2. Fixed penalty- Rs.5000/- taxpayer does not file returns even by 31st March 2009
Conclusion - if no tax is payable by you i.e., all the tax has been deducted by your employer, then you can file your ITR by 31-3-2009 without any penalty.

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