Last Date To File Income Tax Return and Benefits of Timely Filing

The time for filing ITRs (income tax returns) has arrived. Most of the individuals consider this a burden. And most of them are also not aware that earning income above a specified limit, compulsorily require filling of returns, even though the taxes are deducted from their income via TDS. It’s very critical to know the due date and the lastdate to file income tax return.

Due date to file Income Tax Return

The due date to file Income Tax Return is 30th July, 2018 for FY 2017-2018 for Individuals and HUF but for the company or others who are required to file audit report under section 44AB of the Act or working partner of any firm where audit is required under the Act, the due date is 30th September, 2018 and 30th November, 2018 for the assessees who need to furnish the Transfer Pricing report under section 92E of the Act.

Last date to file Income Tax Return

Many individuals fail to file their return within the prescribed due date. However, even in case you’ve missed filing the return before the deadline, you could still file the return. There’s a provision for the late filing of return which is known as a belated return. As per this provision, the return could be filed before the end of the relevant AY (Assessment Year). For instance, a salaried individual who has failed to file his return for FY 2016-2017 before 31st July 2017, he can still file his return before the last date to file income tax return i.e. by 31st March 2018.

Benefits of filing Income Tax Return on time

Filing the income tax return isn’t just a requirement under the statutory tax laws, but it also offers several benefits. Some of the key benefits include:

Evading Fines and Penalties – Similar to your phone or credit card bills where late payment leads to late fines, so does late filing of returns. It’s particularly applicable in case you’re liable for additional taxes. In such cases, the penalty is levied as interest at the rate of 1 percent/month which starts from the last date of filing the return to the date when the return was actually filed. It’s better to just to file the ITR on time to avoid such potentially expensive and unpleasant scenarios.

Carry forward of losses - In case you have incurred losses, these could be carried forward to subsequent financial years and can offer tax relief in subsequent years. However, you cannot carry forward such losses if your ITR is filed after the prescribed due date. 

Quicker processing of refunds – Yes its right! The tax refunds are processed on a “first come first serve” basis. If you have filed your tax return early, the refund would be processed much earlier than of those who filed at the end.

Reducing last-minute stress - Though filing ITRs has become a lot easier over the years if you’re waiting till the last moment for filing your return, it’s quite likely that you may miss out some tax saving opportunity. This could happen due to insufficient time for collecting the relevant documents like loan repayment statements, TDS certificates, Form 26AS, interest certificates, etc. which are necessary to complete the process accurately. Also, if you’re waiting like the majority of the taxpayers till the last moment, you may find the e-filing website to be overloaded leading to technical failures, which may end up delaying your ITR filing. Such kind of stress is avoidable if you file the ITR online proactively before the due date.

Other benefits - If you’re applying for an education, home, vehicle or such other loan or applying for registration of your immovable property, the application would be processed speedily and more easily in case you have been filing the tax returns on time. It’s also one of the mandatory prerequisites for processing of your visa. Banks also might not issue you a credit card in case you haven’t filed your returns timely.

The Bottom Line

The aforesaid reasons could be some of the ones but definitely not the only reasons why individuals must not wait till the last date to file income tax return. If your income tax return shows that it wasn’t filed before the due date, it could depict poor creditworthiness. There are still few weeks left before July 31st. Take the advantage of it and file the tax return conveniently without last minute rush.