India Tax Deadline Approaching
By Dezan Shira & Associates
Posted: 3rd August 2012 10:01The tax filing date for the financial year 2011-12 is July 31, 2012. Returns can be filed after July 31, 2012 but before the relevant assessment year (March 31, 2013), however it is advisable to file the tax returns by the due date.
The timelines for filing up of tax returns are as follow:
- November 30, 2012: Corporate assesses which are required to furnish a report (under section 92E)
- September 30, 2012: All other corporate assesses
- September 30, 2012: Non-corporate assesses, (e.g. partnership firm, proprietary firm) whose accounts are required to be audited under the Income Tax Act.
- September 30, 2012: For working partners of partnership firms covered
- July 31, 2012: For any other assesses (such as salaried income, person having income from house property, interest income, and business income) where accounts are not required to be audited.
All taxes should be filed by the due date. Any failure in filing the taxes will attract an interest rate of 1 percent per month. The interest rate will increase for default in the payment of advance tax.
Advantages Of Filing The Taxes Before Due Date
If the return is filed after the due date, then losses under the section “Profits and Gains of Business or Profession” (other than depreciation loss) cannot be carried forward. Though, the payer can still save the losses against the income (other than income under the head salary) under other heads of the same year. The same procedure also applies for short and long term capital loss from sale of shares.
Therefore, if an individual files a tax by the due date of July 31, 2012, the short and long term capital loss from sale of shares can be carried forward and set off against capital gains or business profits, which could arise in the next eight years.
Tax Return Revision
Returns which are filed after the due date cannot be revised and considered as belated returns. As per the rules, belated tax filing is permitted within one year from the end of the evaluation year or completion of assessment, whichever is previous. However, the payer will have to decline the right to carry forward the losses or revise the return. For all those cases, a candidate can file a return with the due date and then revise it with actual details, subject to certain conditions.
Dezan Shira & Associates is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in emerging Asia. Since its establishment in 1992, the firm has grown into one of Asia’s most versatile full-service consultancies with operational offices across China, Hong Kong, India, Singapore and Vietnam as well as liaison offices in Italy and the United States.
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