OMG! 31st July ... Don't worry

OMG, 31st July is just at the door, and you didn't filed the return yet. So worried! Relax, there is no need to be unduly worried.
I don't know how many of you know that the last date of filing the return is 31st March of second financial year, but yes, it is true.

According to the government site of income tax department, www.incometaxindia.gov.in,

• "may be furnished at any time before the expiry of two years from the end of the financial year in which the income was earned." [1]

For example, this means that for income earned during the financial year 2008-09 (i.e. from April 1st' 2008 to March 31st' 2009). returns can filed any time before March 31st' 2011.

Please note that, Salaried individuals whose tax has already been deducted at source by the companies they work for and there is no further income tax to be paid, need not fret over missing July 31 deadline. They can easily file their return after, without having to pay anything extra. This applies to anybody who has already met his or her tax liabilities.
However, individuals should also take note of :

• Section 271(F) of the Income Tax Act, which allows the assessing officer of the income tax department to levy a fine of 5000 INR if the returns are filed after date (March 31' 2010 in above example)
• Paying the Tax late does come with some cost attached to it. In terms of repercussions, a simple interest of 1% per month will be levied on any tax due.

Also note that, filing late tax may not be an option for everyone, especially for individuals who have a business or capital loss. For them it is advisable to file returns before July 31.

• "Because if you have any business loss or capital loss (long-term or short-term), the same cannot be carried forward for set-off against future income, if the returns are not filed in time"

Filing income tax your Self

[1] http://www.incometaxindia.gov.in/questionbank.htm#D56