As you read the title of this blog… you already know that the due date for filing of Income Tax Return for Individuals and Non-Audit Assesees have been extended by 1 month from 31 Jul 2019 to 31 Aug 2019.
So whats new about this post, it happens all the time….. just last month the Due date for Annual Audit Filing under GST for year ended 31 Mar 2018, which has already been extended 3 times… has again been extended from 30 Jun to 31 Aug 2019.
Well, you aren’t reading this far just to be reminded about the extension of due dates… which is nothing new in India… What you may be curious to know is how this impacts various stakeholders and is it really a boon or a Bane…?
Before we dive into the topic, the Government has also very silently also approved the Union Budget 2019 as presented by Mrs. Sitharaman also on the very same date of extending of the due date for ITR filing. So when ordinary Middle class Ram and Rahim were sighing relief over extension.. the government has very smartly made all budget proposals applicable and with some modification also in some cases…. And you thought the Government has blessed you., Yes it has, but very smartly.
A due date has certain relevance and adherence certainly has some benefits. Primarily it fosters discipline and timeliness to compliance, which everyone should cultivate.
When you File your Tax Return, it preceeds with closure of books, compilation of your annual records, estimation of your liability or Refund, Prepration of your Balance Sheet or personal Statement of personal affairs. All these steps takes closer to your financial state of affairs. Isn’t is apt to take care of your financial matters as soon as possible after year end..? it would give you sufficient time to rectify any mistakes in your financial records or future plan well in time.
Most of us pays some extra tax and so we have Refunds due from government. So when you delay your tax return… you also delay your refund… Simple maths. Even if you don’t have refund rather a Tax due to pay… you would still be liable to pay Interest @ 1.5% for any part of month, so if you pay your due tax on 01 Aug instead of 31 Jul… you would be liable to pay interest for entire Aug.
Also there is a misconception, that returns filed during the last days are more prone to getting scrutiny notices. We cannot confirm or dispel this understanding, but again why take a risk. You have to file your return anyway… so why delay.?
Do you fix your toilet pipe yourself…?
Ofcourse you don’t … Then why file your Tax Return yourself. A Tax Consultant has undergone education, training and experience to understand the various tax situations and how the benefit of advantageous Tax provisions can be applied to your Benefit.
Taking professional help always works to your advantage. The fee paid to the Tax Consultant brings multifold benefit to your tax awareness. So do consider taking professional help.