If you do not file tax returns on time, you may have to pay a penalty up to Rs 10,000 on July 31

If you are in the taxable portion, it is your duty to file tax returns as a responsible Indian citizen. The Department of Taxation reminded taxpayers to file tax returns for the 2017-2018 taxation year. In order to avoid any last-minute rush, it is best that you file tax returns well before July 31st. If you do not meet this deadline, you can still file your tax returns, but in this case, you can claim a penalty of Rs 10,000. In addition, a delay in filing tax returns also requires you to pay interest.

Here are five things that will happen if you do not file a tax return on time :

1) Penalty : A three-tier fee system was introduced not to file income tax returns on time. If the return is filed after the due date but before December 31, the fee will be Rs. 5,000 while in other cases it will be Rs. 10,000 However, in the case of taxpayers whose total income does not exceed Rs. 5,000,000, the fees payable are limited to Rs. 1,000, Ashok Shah, Partner, NA Shah Associates LLP, told NDTV

(Read: Main things to know about Sahaj, Other forms of ITRs | How to minimize the amount you pay in taxes)

2) Reducing the time to review your tax returns : "Suppose you file your RTI and you end up misleading you … According to the new rules, you no longer have the time until March 2019 to make the change (for ITRs for FY Previously, taxpayers had a delay of two years to revise and resubmit an erroneous ITR, which has now been reduced a year after the end of the & # 39; fiscal year. , Said Archit Gupta, founder and CEO of ClearTax

3) Interest to be paid on the amount of tax : when the tax return is interest at the rate of 1 percent per month or part of the month are collected until the date of the same. This interest is payable on the tax payable after deduction of the TDS (withholding tax), TCS (withholding tax), tax advance and other credits / tax credits available in under the law, said Chirag Chordia, NA Shah Associates LLP. TDS is deducted by the buyer or the payer while the TCS is collected by the recipient / recipient / seller.

4) No loss carryover : If the tax return is not filed on time, the taxpayer will not be allowed to carry forward any loss under the heading "Profit and Gains" of the business or profession "or" capital gains ". However, the unabsorbed depreciation and the loss under "income from real estate" can be carried forward, according to experts.

5) Delay in the processing of the refund of income : Once the statement produced and the verification of the same is duly completed, the Central Processing Center, Bangalore, of the Department of Finance. Income tax deals with the tax return. This is only when the tax liability or refund of the taxpayer is determined. Thus, if the taxpayer claims a refund, the late filing of the tax return will result in the late receipt of the tax refund.

It is therefore advisable for each taxpayer to file his tax return well in time and avoid various consequences