Quick refunds
Analysts say these steps have helped taxpayers as they do not have to wait endlessly for refunds.
Those who have not filed returns can file them belatedly, as per the provisions of the Income Tax Act, 1961. A belated return can be filed within two years of the end of the financial year or before completion of the assessment year, whichever is earlier.
Of course, there are certain issues one has to keep in mind for belated filing. If your returns is not filed within the deadline, 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
