As per Income Tax Act, the due date to file Income Tax Returns for Individuals and those whose accounts are not subject to any audit fall on 31^st July. For the Financial Year 2015-16, the due date for filing Income Tax Return for company and for other assesses whose accounts are subject ot audit will be 30^th September, 2016.

Statutory Implications for non-filing of Income Tax Returns within due date

1. Interest @ 1% per month will be applicable on the balance tax payable from the due date to the actual date of filing;
2. In case you had committed any errors or mistakes while filing original return, revised return can be files only if you had filed the original return on or before the due date;
3. The benefit of carry forward of losses under the head “Capital Gains” and “Business Losses” will be available only if you file the return before the due date;
4. Delay in filing could mean having let go of interest due on tax refund if any; and
5. If a person required to file Return u/s 139(1) of Income Tax Act, fails to file Return before the end of the relevant Assessment Year, i.e 31st March 2015 a penalty of Rs. 5,000 shall be levied. Means you can file return for March 14 ending till 31st March 2016.

Other Advantages

1. One of the eligibility criteria for availing bank loan from Banks is Income Tax Returns and other related documents;
2. Persons who are currently in employment, who wants to become entrepreneurs in future must file their Income Tax Returns. For availing Bank Loan, Bank will ask for the individual tax returns of Partners/Directors in case of Partnership Firm /Company; and
3. While applying for VISA, most the Country’s Embassy will ask for Income Tax Returns for past few years.