CBDT extends return filing due date to 31 August 2018

F. No. 225/242/2018/ITA.II

Order under Section 119 of the Income-Tax Act,1961.

Dated: 26^th July 2018

• The due date of filing income tax return u/s 139(1) of the Income Tax Act, 1961 ('the Act') for the Assessment Year 2018-19 for certain categories of tax payers such as Individuals, HUF, etc. is 31 July 2018.
• The CBDT has extended the due date of filing income tax returns for all such categories of taxpayers from 31 July 2018 to 31 August 2018.
• It should be noted that the Finance Act, 2017 has inserted a new section 234F, with effect from Assessment Year 2018-19. This section proposes to levy late fees for filing of belated returns as follows:
  • A penalty of Rs 5,000 will be levied if the return will be filed after the due date but before 31 December.
  • The said penalty will be increased to Rs. 10,000 if the return is filed post 31 December following the financial year.
  • However, in case where taxpayer's income is less than Rs. 5 lacs, such penalty will be capped at Rs. 1,000.
• Earlier, a writ petition has been filed challenging the constituational validity of such late filing fees u/s 234F of the Act, the verdict on which is still awaited.
• Further, it should also be noted that losses incurred (other than Loss under the Head of House Property) by any assessee are also not allowed to be carried forward to subsequent years in cases where return is filed beyond the due date