What happens if you file your income tax late? | Fusion - WeRIndia

What happens if you file your income tax late?

What happens if you file your income tax late?

Each year, you have to file your tax Returns on time. The last date for filing tax returns is July 31. However, generally the government extends it based on the case. While it’s an honest thing to file returns on time most people recommend that you should do so much before the July 31 deadline as you may receive your refund early likewise.

If you file your income tax returns after July 31, there could be many problems. If you file your taxes after the deadline you are liable to pay an interest. The interest will have to be paid by you at the rate of 1 percent per month. If you pay your advanced tax after July 31st, you cannot carry forward your losses.

You have to pay your advanced tax if your TDS is not being deducted. It is important to note that the longer you take to file your tax returns, the longer the Income Tax Department takes to process your refund. This means that if you have a large refund that is due, you will be at a disadvantage.

So, remember to file your taxes on time and avoid the above mentioned disadvantages.

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