InvestorQ : I missed the August 31st tax filing deadline due to sudden exigency. What is the way out for me now?
Moii Chavate made post

I missed the August 31st tax filing deadline due to sudden exigency. What is the way out for me now?

Answer
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Sam Eswaran answered.
1 year ago


There are two ways out for you now. But that would depend on whether you have any tax dues or you don’t have any tax dues. Here is what you should know.

· In case you have tax dues and you have not filed tax returns then it could entail a penalty for the delay in payment of tax and also interest on delayed interest payment. The tax assessing officer has the discretion to take up your case and impose any additional penalty on the same. You must check with your chartered accountant for the remedies available in your case.

· The second option is that you do not have any tax dues but have just forgotten to file the returns. In that case, you can file the returns till March 31, 2020. But the penalty is mandatory now, unlike in the past. The penalties will be levied on two fronts. Firstly, you have to pay Rs.5,000 as penalty if you file before December 31st this year. If you file between January and March next year then the penalty will be Rs.10,000. This is part of the system and you cannot avoid this penalty. There are two additional problems you will face. Firstly, any refund for this year will not earn any refund even if the refund gets delayed. Secondly, you will not be allowed to carry forward any loss for this year or even write off any loss for this year. To that extent, your total liability could go up.

Today, the penalties for late filing of returns are quite steep and also it becomes a black mark on your future tax returns. I would suggest that in future you must try and file your returns well before the deadline.