you cannot carry forward losses incurred in business or capital loss (other than loss from house property) during the year. Also, the taxpayer will have to forego the right to carry them to future years. Under the Income Tax Act, if the returns are filed by the due date, the loss is allowed to be carried forward for eight years for setting-off against incomes of future years.
The biggest disadvantage of not filing returns on time is the a delay in processing of refund.
Analysts say returns filed before the due date are processed first. After this, belated filings are taken up and there is a delay in giving refunds. Moreover, for delayed tax returns, one has to pay interest of 1% per month on the amount of taxes. Also, revision of returns is not allowed if filed beyond the due date.
For e-filing, one needs to register at the income-tax website and use a digital signature. After e-filing, Form ITR-V is generated online, which should be printed, signed and posted to the Central Processing Centre, Bangalore, within 120 days of e-filing.
To ensure speedy refund, the taxpayer has to ensure that once the ITR-V is generated, the form is downloaded. One must then print the form in blue ink and send the signed form by ordinary/speed post to the Central Processing Centre (CPC), Bangalore. After receiving the signed ITR-V form, the CPC will send an e-mail, acknowledging the receipt of ITR-V to the e-mail ID stated in the return form. Also, the taxpayer will get an SMS on his mobile number.
If a taxpayer does not get any response from the department regarding receipt of ITR-V, he will have to send a fresh ITR-V to the CPC and get a receipt.
During e-filing, one must take precautions while entering data and re-verify all details entered before submitting/confirming the return.
Incorrect details may lead to a notice from the IT department. The taxpayer should verify that the Permanent Account Number (PAN), the amount of Tax Deducted at Source (TDS) and details of employer are correctly entered. Also, details about interest earned from