The last day to file the Income Tax Returns (ITR) for the financial year 2016-17 and assessment year 2017-18 is today (Monday) though the government has not put any penalties, failing to do it might lead to severe financial losses.
The Income Tax department has already made it clear that there will be no extension of the deadline. The penalties proposed by the government for people missing the deadline don’t apply until next year. The filing of ITR has become more important than ever, especially if one has made cash transactions of Rs 2 lakh or more post demonetization, from 9 November to 30 December 2016. It has been made mandatory to report such transactions for the financial year (FY) 2016-17.
Not only this, several other crucial measures have been taken post-demonetisation such as linking of Aadhar number with Permanent Account Number (PAN) has also been made compulsory for the taxpayers. People will have to pay a penal interest of 1 per cent per month from the due date of return filing till the actual day of filing if they file their ITR after the due date with unpaid tax liability. This penalty can be accompanied by prosecution by the IT department if the return is filed later than the assessment year and if it exceeds Rs 3,000.
People are further advised to provide details of all of their bank accounts while filing the ITR ensure their income matches with Forms 16 and 16A and also link their bank accounts with Aadhar for easy e-verification of their returns before they file their taxes.
According to an earlier release issued by the Income Tax Department, an amount of Rs 58,783 crore has already been received as advance tax up to 30 June reflecting a growth of 11.9 per cent over the advance tax payments of the corresponding period of last year.