Reportedly back in 1966, the Beatles sang "If you drive a car, I'll tax the street / If you try to sit, I'll tax your seat..." ("Taxman" from the album Revolver). Meanwhile it's that time of the year when the taxman's piercing gaze falls on mortals who eke out an honest living. The last date for filing I-T return for 2018-19 is July 31. Like most other years the last date may be extended. The threshold exemption limit is Rs 5 lakh. However, if you have spent Rs 2 lakh on a foreign trip or have run up electricity bills of Rs 1 crore annually then you have to file income tax return.
Furthermore even if you miss the last date you can file your I-T return any time during 2019-20 (till March 31, 2020). But there is a hefty fine to be paid for not filing by the due date. Further if you file your I-T return by December 31 then the fine is Rs 5,000. The penalty for filing January 1 and March 31, 2020 is Rs 10,000. For those whose income is below Rs 5 lakh, the late fine is capped at Rs 1,000.
Moreover the financial slap does not stop at paying a late fee. There is more such as interest on due taxes. You will not be allowed to carry forward certain losses capital loss or loss under income from house property to next year. Perhaps the taxman can even send you to jail if you fail to file income tax return. And if the tax due is more than Rs 25 lakh then a seven-year term in the cooler awaits you.
