File belated tax return with a cool head!

Have you missed the train?? The tax train, that is!! If you have missed filing your tax return, do not despair...you can still file a 'belated

 
return'. The Indian tax authorities are always ready to give you a second chance!

In case of financial year beginning 1 April 2007 and ending on 31 March 2008, the due date for filing the income tax return for individuals whose total income exceeded the maximum amount which is not chargeable to tax (and who does not have to get the accounts audited) was 31 July 2008. For those of us who managed to meet the deadline, a job well done - for others, there is no real reason for you to worry. You can still file your return which will be considered as a valid tax return, but just that is would be treated as a 'belated return'.

Some major implications of filing a Belated Return

For the financial year ended 31 March 2008, the belated return can be filed up to two years from the end of financial year, which is up to 31 March 2010. However, there are riders attached to filing a belated tax return. Otherwise, there would be no point in the tax authorities spending so much on advertising the deadline of 31 July 2008.

If you file your return after one year from the end of financial year, that is after 31 March 2009 (for returns pertaining to financial year ended 31 March 2008), there is an exposure to penalty of Rs 5,000 depending on the discretion of the revenue authorities. This penalty will not apply if you file your tax return before 31 March 2009.

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