File Income Tax Return & Plan Your taxes before 31st March 2013 – Save Penalty

The Due Date 31^st March 2013 is important for you in regarding to the Filing of Income Tax Return for the following Assessment Years –

For the Assessment Year 2011-12 (FY 2010-11)

This is very important for the assessees those who have not yet filed the Income Tax return for the Assessment Year 2011-12 that –

The assessee would not be able to file the return after 31^st March 2013. The assessee can file their return on or before the due date i.e., 31^st March 2013 with the Penal Interest on monthly basis will be levied on the outstanding tax amount payable together with the flat penalty of Rs. 5000 which AO may or may not exercise after giving due hearing to the assessee.

Please note that the assessee would not be able to file the Income Tax Return of AY 2011-12 (FY 2010-11) after 31^st March 2013. So those who had not yet filed yet should file their return till 31^st March 2013.

For the Assessment Year 2012-13 (FY 2011-12)

The due date of filing Income Tax Return for the AY 2012-13 (FY 2011-12) had been extended from 31^st July 2012 to 31^st August 2012. In case you have missed the deadline to file your return of income for FY 2011-12, you can still file the same before 31st March 2013; a Penal Interest on monthly basis will be levied on the outstanding tax amount payable.

Further for the AY 2012-13 you will still be able to file the Income Tax Return after 31^st March 2013 till 31st March 2014 but the thing is that after 31^st March 2014 assessing officer can impose a penalty of 5000, and that is also his (AO) power which he may or may not exercise after giving due hearing to the assessee.

Thus, if you delay it beyond March 31, 2013, you will not only be levied with the Penal Interest but may even have to face the maximum penalty, i.e. a flat amount of Rs. 5000.

So it is better, in order to limit the financial impact and to avoid penalty, especially if you have an outstanding tax liability, it is essential you file returns for FY 2011-12 before March 31, 2013.

Further filing of income tax return on 31^st March 2013 will not be possible for the assessees of FY 2010-11.

For the Assessment Year 2013-14 (FY 2012-13)

For the AY 2013-14 if advance tax paid by the assessee is less than 90 per cent of the total tax payable if the same amount is more than Rs. 10000 on 31st March 2013, then interest u/s 234B shall be paid @1% per month on the deficit amount from April 1 of the following year till the date of filling of return. Thus, the assessee is required to make the payment of advance taxes before 31^st march 2013 in order to prevent himself from levy of interest penalty