Sunday, June 17, 2012
The due date for filing tax returns for the financial year 2011-12 for most individuals is July 31. As the due date comes closer, everyone will advise you to file tax returns within the due date. Though tax returns can be filed belatedly, before the end of the relevant assessment year (March 31, 2013, for the tax year 2011-12), without any penalty, it would be better to do it by the due date - July 31. "In case there are any taxes payable (after considering TDS, advance taxes and other credits available), any failure to file the returns of income within the due date would attract interest at the rate of 1% per month for the delay in filing the returns," says Amarpal Chadha, tax partner, Ernst & Young. The delay in filing the returns will also increase the interest payable for default in the payment of advance tax. Here are some reasons why you should consider filing your tax returns before the due date.
July is the season for filing your tax returns for the previous year. While most tax payers would be engaged in filing their annual tax declarations to their company for the current year, let us not forget about the last duty due for the previous year. Who should file and when? As per the relevant provisions of the Income Tax Act, 1961 (‘the Act’), every individual whose total income for the year, before accounting for the tax-saving investments and expenses, exceeds the prescribed exemption limit (which is Rs 1.9 lakh for resident women; Rs 2.5 lakh for senior citizens, Rs 5 lakh for ultra senior citizens and Rs 1.8 lakh for other individuals) is obligated to file his tax return. Every individual (except for those who are subject to audit under the Act and / or who is a partner in a partnership firm which is subject to audit under the Act), has to file his return by 31st July. In other cases, the due date will be 30 September. Like our Facebook Page