31st July 2018 is the due date for filing of Income Tax Return for Individuals, Hindu Undivided Family (HUF), Association of Persons (AOP), Body of Individuals (BOI) and Non Audit Assessees.
The Central Board of Direct Taxes (CBDT) has extended the due date for filing of income tax return to 31st August 2018 for the category of tax payers required to file ITRs till 31st July 2018. (Notification no 225/242/2018)
This has been a big relief for small taxpayers who still have not file their returns. This extension of due date also gives taxpayers relief from penalty (imposed from F.Y. 2017-18 & onwards) under section 234F i.e. Rs 5000/- if return is filed after 31st July 2018 and before 31st December 2018.
It is a clear indication from the government that this relief has been provided so small taxpayers don’t suffer the penalty and simultaneously should develop a habit to file their income tax returns timely from next year onwards.
Few Benefits for filing Income Tax Returns on time are:
- Avoid penalty for delayed filing of Rs 5000/- (Before 31st December) & Rs 10000/- (After 31st December). Rs 1000/- flat fees for delayed filing if total income doesn’t exceed Rs 5 lakhs.
- Carry forward of losses i.e. Losses of previous year can be carried forward in current year only if return is filed within due dates.
- Interest on Income Tax refund is eligible only if return is filed within due dates.
- Saving interest for delayed filing of Income Tax Return i.e. interest under section 234A.
- Early processing of income tax refunds and avoid last minute hassle.