Disadvantages of filing a late return As per Income Tax Department of India : “A tax return may be furnished any time before the expiry of two years from the end of the financial year in which the income was earned’. This means that if you earned your income during FY 2012-13, you may file a belated return anytime before 31st March, 2015 ” . But there are some disadvantages if you don’t file your returns on time . They are *You will not be able to carry forward your Business loss (Speculation or otherwise) , capital loss , loss due to owning and maintaining of race horses. *Loss of Interest on refund : You may loose interest on refund u/s 244A specially in case if you are claiming a Major amount as refund. *You cannot revise your return. *late filing can delay processing for tax refunds. * Incremental Interest U/s. 234A – If the tax has not been paid before the end of the tax year concerned and you file the return late, incremental interest at the rate of 1% per month will be payable on the unpaid amount after the due date. This is in addition to the 1% per month interest for non-payment of advance tax, that is, tax due after tax deduction at source exceeding Rs 10,000. Thus, late returns can result in an additional interest burden.
Posted on: Tue, 04 Mar 2014 11:52:19 +0000
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