If I file late income tax, what effect it will have?

I want to know what will happen if I don’t file the income tax on time.

A penalty fee will be charged if you file income tax returns late. If you have a income of more than Rs. 5,00,000, you will be charged a penalty of Rs. 10,000 after the deadline, which is 31st March but if you have an income which is less than Rs. 5,00,000, you will have to pay a penalty of Rs. 1,000.

If you pay the return within the due date, you will receive the refunds also earlier against the excess amount paid but not if you pay the return after the due date.

1% interest is charged every month on the amount which is not paid or on the remaining tax. The calculation will start as soon as the due date has passed.

It is important for you to file the income tax return on time if you have incurred some losses in a financial year. These losses cannot be carried forward to the next year.

If you feel you have made an error while filing the tax returns, it has to be corrected immediately. Delay of which might make you pay a penalty.