Its time for all of us to file the tax returns.You all might be aware 31 July is the las date fot filing.But many of us do not know what if we cannot file the tax return before July 31, 2006, we can still file it on or before March 31, 2007. This is called belated return.
The disadvantages of late filing are:
1. If you have any taxes to be paid, then you would be liable to pay penal interest @1% per month under Section 234A
2. If you have incurred any losses (like one does when selling shares at a lower price than when one bought it), you are normally entitled to carry it forward. So over time, you can balance your capital gain with your capital loss. Now you cannot carry forward the losses you incurred this year.
3. If you have any tax refund, it would take more time to process.
If you delay filing of tax return beyond March 31, 2007, the tax department may charge you a penalty up to Rs 5,000.
The tax department can also issue you a notice requiring you to file your tax return. If you still do not file it, the tax officer is entitled to make a Best Judgment Assessment. This means that he can estimate your total income using his own judgement and make you pay taxes on that income.
Source : Rediff.com
Complete Article : http://in.rediff.com/getahead/2006/jul/17tax.htm
The disadvantages of late filing are:
1. If you have any taxes to be paid, then you would be liable to pay penal interest @1% per month under Section 234A
2. If you have incurred any losses (like one does when selling shares at a lower price than when one bought it), you are normally entitled to carry it forward. So over time, you can balance your capital gain with your capital loss. Now you cannot carry forward the losses you incurred this year.
3. If you have any tax refund, it would take more time to process.
If you delay filing of tax return beyond March 31, 2007, the tax department may charge you a penalty up to Rs 5,000.
The tax department can also issue you a notice requiring you to file your tax return. If you still do not file it, the tax officer is entitled to make a Best Judgment Assessment. This means that he can estimate your total income using his own judgement and make you pay taxes on that income.
Source : Rediff.com
Complete Article : http://in.rediff.com/getahead/2006/jul/17tax.htm
