NEW DELHI: India’s Income Tax Department allows you to file returns till the end of the assessment year. If you have paid your taxes for 2013-14, there is no fear of penalty or notice as long as you file your returns by 31 March, but if you miss this deadline, you can be slapped with a Rs 5,000 fine.
There is also penalty to be paid in case you owe tax. Says Sudhir Kaushik, founder and CFO, Taxspanner.com: “You will have to pay a penal interest of 1% per month on the amount of income tax due, even if you file your return within the March deadline.” The penalty is charged for every month of delay since April 2014.
In case you had to pay advance tax and did not meet the deadlines of 30% by September, 60% by December and 100% by 15 March, there is a price to pay. Suppose you failed to pay or the amount you paid is less than the compulsory 30% of the total liability by the first deadline, 15 September, you will be charged an interest. Nagpur-based certified financial planner Parag Paranjpe explains, “This is calculated at 1% simple interest per month on the defaulted amount for three months. The same penalty would apply if you miss the second deadline, 15 December. Missing the last deadline of 15 March would mean paying 1% interest on the entire defaulted amount for every month until the tax is fully paid. This is applicable to those with an outstanding tax liability exceeding Rs 10,000.”
