Friday, March 30, 2018

Not posting TAX returns before 31st March?? God Bless you!!!

I will file returns AFTER March 31st.....I am very busy these days......

If any of such thought has ever crossed your mind......then discard that thought immediately!!
The disadvantages are huge and the advantage......absolutely ZERO.

WHO SHOULD PAY TAX?
Individuals and HUFs earning above Rs.2,50,000 compulsorily have to file returns
Mandatory filing of the income tax return:
Income Tax Slab for Individual Tax Payers & HUF (Less than 60 Years Old) for FY 2016-17 – Part I
Income from Rs 2,50,000 – Rs 5,00,000   10%
Income from Rs 5,00,000 – 10,00,000       20%
Income more than Rs 10,00,000 30%
Surcharge: 15% of income tax, where total income exceeds Rs.1 crore.
(Contact your Chartered Accountant for more details)
If your income does not exceed the tax limit...you have nothing to fear....RELAX
But, if it does cross the Limit...then you better file the returns or you better be prepared to face the Music
F or the Financial Year 2016-17 (AY 2017-18), the return can be filed by the 31st March 2018.

WHAT IF I AM NOT ABLE TO FILE THE RETURNS?

The implications could be many and to begin with you may
1)      Get a Notice from the Income Tax Department asking for Explanation and proofs for delay in filing (or not filing at all)
2)      You could be penalised ranging from Rs.5000/- to Rs.10,000 besides being levied with 1% interest on Tax Due on per month basis  () Penalty of Rs.5000 before Dec 31, 2018 and Rs.10,000 thereafter till March 31 2019)

 (Important Note:

This penalty provision has been abolished in relation to the return of income required to be furnished for any assessment year commencing on or after the 1st day of April, 2018.

New section 234F in the Act provides that a fee for delay in furnishing of return shall be levied for the assessment year 2018-19 and onwards.)]

3. You may also be levied a Penalty for CONCEALMENT OF INCOME (IT Department will obviously think you have deliberately concealed the income and not filed the returns)
4. FINALLY, in the worst case scenario (your bad luck) 
 under sec 276cc you may notice for prosecution and get JAILED with a Rigorous Imprisonment of upto 7 years!!!!!!!!!

OH MY GOD! ANY OTHER IMPLICATIONS?
Yes. Definitely.
  1. You will not be allowed to carry foward losses you may have incurred in your business or investments. (Normally this is allowed for upto 8 years and can be set off against Profits). This could affect your Financial situation) However, Loss from House Property is still allowed to be carried forward
  2. You are disallowed to claim refund of any Excess Taxes you may have paid.
    Sometimes due to some error, oversight, omission, you may have paid Excess Taxes or a wrongful TDS may have occured. In normal Tax Filing, you are entitled to claim refund and get back your rightful amount but this is disallowed in case of Belated Return Filing!
  3. You may not get Life Insurance Cover.
Normally Life Insurance Companies require you to submit your IT returns while you are taking a Life Insurance Policy and they may well reject your policy in case of non submission of IT Returns

  1. Even your Credit Card company may reduce your Credit Limit and may even cancel your Card
  2. Your Credit Standing will get hugely affected and you may face problems while applying for loans....personal loan...home loan...whatever
Easy loan processing: At the time of applying for a loan, banks ask applicants to furnish copies of tax returns for the past 2-3 years. This helps banks understand your financial position and ability to repay the loan. Providing a copy of returns helps in faster approval.
  1. Some countries may even deny you a VISA if you are not able to submit your IT Returns.
ANY OTHER ADVANTAGE OF FILING RETURNS??

YES.
A person should file IT returns irrespective of whether the income is within the exemption limit. Don’t we need to produce IT return statements when we apply for loans ? Exemption is a privilege and we shouldn’t use it as an excuse for not filing returns.

LAST MINUTE TIP :
Those friends who are stuck while filing tax return for AY 2016-17 for foreign companies due to lack of Indian bank account details, please fill up NNNN0NNNNNN in the IFSC Code field.
And, despite your best efforts you still could not file your returns....then note there is still time till March 31, 2019 to file BELATED RETURN is permitted
Finally, you are advised to take the advice of a good qualified Chartered Accountant for all Tax Related Matters.
Best of luck,
Srikanth Matrubai

You can invited to join my TELEGRAM channel MF World  http:/http://https://t.me/MutualFundWORLD/


You can also listen to my talk on this subject which was beamed LIVE on RADIO CITY
Disclaimer : Its in KANNADA
Listen to File Tax before 31st March.3gpp by Srikanth Matrubai #np on #SoundCloud
http://https://soundcloud.com/srikanth-matrubai/file-tax-before-31st-march/

http://https://soundcloud.com/srikanth-matrubai/penalty-for-not-filing-tax/

Srikanth Matrubai on Radio City on

You have to FILE tax returns before 31st March




Also visit http:/http://https://t.me/MutualFundWORLD/




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