In a major relief to Income Tax Payers, the Central Board of Direct Taxes has extended the due date for filing return from 31st July 2018 to 31st August 2018 for Assessment Year 2018-19 (Financial Year 2017-18).
The following categories of taxpayers are required to file income tax return on 31st July of every year [in case audit is not required] :
- Partnership Firm
- Body of Individuals
Taxpayers have an option to file income tax return after the due date as well. However, the time period for filing belated return has been reduced. Earlier, belated return could be filed upto 1 year from the end of assessment year. With the amendment in section 139(4), belated return can be filed only in the same assessment year. So the return for Financial Year 2017-18 i.e., Assessment year 2018-19 must be filed by 31st March 2019.
A new Section 234F is applicable w.e.f 1st April 2018 which provides for penalty in case of failure to file return as per the time prescribed under Section 139(1). A penalty of upto Rs. 10,000 might be imposed in case the return is not filed within the deadline mentioned above. This is in addition to interest leviable under Section 234A.