In this video we discuss what you need to know when you miss the income tax filing deadline
Now, you will need to file your income tax return under Section 139(4)
You will also need to pay a late fee for late filing of income tax return
Till December 31, you will need to pay Rs 5,000 as late fee. If your annual income is less than Rs 5 lakh, you pay a late fee of Rs 1,000
Between December 31 and March 31, you pay Rs 10,000. So, more you delay, higher the late fee
You need to pay penal interest for any outstanding tax with tax chargeable on a monthly basis
You pay penal interest rate for the period comprising of the time tax became due till the time you paid the tax
If income tax authorities determine that you need to pay more income tax than what you have calculated and paid, you need to pay penal interest for that amount too
When you miss your income tax deadline, you also miss out on the facility to carry forward your capital losses in the 8 subsequent assessment years
This means that you don't get to offset your capital gains with losses in the future years
This could mean higher income tax outflow in the subsequent years
You also don't get to file a revised income tax return which is otherwise allowed within 120 days of filing your income tax return, when filed before the deadline