₹5,000 feels expensive 𝐁ut 𝐡𝐚𝐯𝐞 𝐲𝐨𝐮 𝐜𝐚𝐥𝐜𝐮𝐥𝐚𝐭𝐞𝐝 𝐭𝐡𝐞 𝐜𝐨𝐬𝐭 𝐨𝐟 𝐝𝐨𝐢𝐧𝐠 𝐧𝐨𝐭𝐡𝐢𝐧𝐠? If you have Missed the ITR deadline? You can still file belated return until 31st Dec
MY FP&A view: compare the scenarios before deciding.
- 𝐒𝐜𝐞𝐧𝐚𝐫𝐢𝐨 𝟏 | 𝐓𝐨𝐭𝐚𝐥 𝐈𝐧𝐜𝐨𝐦𝐞 𝐔𝐩𝐭𝐨 ₹𝟓L Late fee is capped at ₹1,000 not ₹5,000 Late Fee upto ₹5Lakh: 1K,above ₹5Lakh:5k, If income below exemption limit : 𝐍𝐈𝐋𝐋
- 𝐒𝐜𝐞𝐧𝐚𝐫𝐢𝐨 𝟐 | 𝐑𝐞𝐟𝐮𝐧𝐝 𝐃𝐮𝐞 you can still file a belated return and claim it. The late fee still apply so compare your Potential refund with the Fee. In most cases Filling wins.
- 𝐒𝐜𝐞𝐧𝐚𝐫𝐢𝐨 𝟑 | 𝐓𝐚𝐱 𝐏𝐚𝐲𝐚𝐛𝐥𝐞 𝐨𝐫 𝐋𝐨𝐬𝐬 𝐭𝐨 𝐜𝐚𝐫𝐫𝐲 𝐟𝐨𝐫𝐰𝐚𝐫𝐝 Interest will apply to unpaid tax. Carry-forward of loss benefit is already lost by missing original due date (𝐄𝐱𝐜𝐞𝐩𝐭𝐢𝐨𝐧 House Property) But Question is What happens after 31st Dec ITR-U may be an option but It means extra tax of 25% to 70% on top of tax and interest, and it cannot be used to claim a refund.
Quick test
Whats the FP&A Lesson Good financial decisions come from comparing scenarios, not reacting to one visible cost
What Should You Do
Calculate the cost of compliance. Understand the consequences of inaction. Then decide
Act Now?
About 7 Weeks are left
If you are unsure of your filling positions feel free to DM.
Book a ConsultationThis article is for general information, based on the provisions applicable at the time of writing, and is not professional advice. Tax rules and limits change, and the right answer depends on your specific facts. Please consult a qualified Chartered Accountant before acting. Published by M Karkara & Co., Chartered Accountant, Chandigarh, in line with ICAI Regulation 190A.