I am 25 years, unmarried and reside with parents in Mysuru. I work for a reputed IT Company where TDS is deducted. I have been ignorant and not filed ITR. Will I have to pay a penalty for this? What happens if you miss the deadline of filing Income Tax Returns?
You have to file ITR even if TDS has been deducted from your salary. The finance ministry has said it won't extend the July 31 deadline for filing income tax returns this year, however, it got extended to 5th August. The government has not put any monetary penalties for crossing the deadline of July 31st. The penalty proposed for people missing the deadline doesn’t apply till next year and it also doesn’t apply for ITRs filed for the financial year 2016-17. 1.If you made cash deposits in your bank accounts over Rs 2 Lakh during demonetization which is November 9, 2016- December 30, 2016, you haveto mandatorily report such transactions for FY2016-17 or Assessment Year 2017-18. 2. If you want to claim refunds on advance taxes paid or on tax deducted at source, you will lose the interest payable to you by the IT department. An ITR filed after the due date is called as belated return. It can be filed before the end of the assessment year i.e. before March 31st, 2018.You will have to file late/belated returns which is the returns filed after the due date and if you miss the deadline even by a day, you would be losing interest for at least 4 months (April, May, June and July). If you file a belated return you cannot carry forward losses (except loss from house property). If you have any unpaid tax liability, filing your return after the due date would result in levy of penal interest @ 1% per month from the due date of filing the return till the actual date of filing.