Avoid Penalty on Income Tax filling

I like to pay taxes. With them, I buy civilisation. – Oliver Wendell Holmes Jr.

In the Union Budget 2018, several tax changes have come into effect. One of them is the penalty on the late filing of income tax filling. Knowing these tax changes will help you to save yourself from penalties. So it is necessary to know the income tax filing due dates to avoid penalty on income tax filing. Let’s check how to avoid penalty on income tax filing.

Starting from 1st April 2018, if you file your ITR post due date, you will have to pay a heavy penalty up to Rs. 10,000. You are liable to pay a penalty of Rs. 5,000 if you file your income tax return post due to date i.e. 31st July 2018 but before 31st December 2018. And the penalty of Rs. 10,000 if you file income tax return after 31st December 2018.

Over and above this penalty, you will be charged an interest of 1% / month for outstanding tax. This will be calculated from the due date to your filing date of return. Let’s understand this with the example.

Suppose you are liable to pay Rs. 1 Lakh as income tax which is not paid by you. In this case, your tax liability will be calculated at 8% ( 8 months past due date). So Rs. 8,000 will be an interest amount over and above Rs. 10,000 penalties.

There is also a reduction in the time limit for filing revised ITR. Earlier a taxpayer was allowed to file revised returns up till two years from the end of the financial year. Same has been shortened to now one year.

Due Dates for filing Income Tax Return

Remember below two broad due dates as applicable.

  • 31 st July 2018 for Individuals
  • 30th September 2018 for Businesses

Here is a tax calendar for 2018.

Tax Calendar for 2018
15thJune, 2018First installment of advance tax for the assessment year 2019-20
Certificate of tax deducted at source to employees in respect of salary paid and tax deducted during 2017-18
31stJuly, 2018Due date for filing Income tax return for FY 2017-18 for all persons except :
(a) Corporate Assessee – Companies
(b) Non-Companies whose books are required to be audited
(c) Working partner of a firm whose accounts are required to be audited
15thSep , 2018Due date for the Second installment of Advance Tax for the FY 2018-19
30th Sep, 2018Due date for filing of  Audit report/Income tax return for the FY 2017-18 for the following:
(a)companies
(b)Non-Companies Whose books are required to be audited
30thNov, 2018(a) Due date for filing Audit report for the FY 2017-18 in case of a person who is required to submit a report pertaining to international or specified domestic transactions under section 92E
(b) The due date for the report to be furnished in Form 3CEB in respect of international and specified domestic transactions
(c) The due date for filing of Income-tax Return for FY 2017-18 for the aforesaid taxpayers
15thDec, 2018Due date for the third installment of Advance Tax for the FY 2018-19

tax calendar 2018

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