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The finance ministry has said it won't extend the July 31 deadline for filing income tax returns this year. The panic is evident, considering the fact that the tax department's filing system has been running erratically since Saturday. 

The big question right now is what happens if you still miss filing your tax returns before July 31 midnight. Here's what you should know. 

Also read:  How Salaried Individuals Should File Their Taxes.

Can I file my income tax return after the deadline? 

Yes, you can. An ITR filed after the due date is called a belated return. It can be filed before the end of the assessment year i.e. before March 31, 2018 in this case. Infact, from FY16-17 i.e. AY17-18 onwards you are even permitted to revise a belated return. However, if you file your return after the deadline you will lose out on certain benefits. 

Filing a belated return 

The process of filing a belated return is the same as me as if you file the return on or before the due date. The main difference would be that while filling the applicable ITR form you would have to select "Return filed under section 139(4)" in the drop down menu in the relevant box in the form. Also, remember that if you are filing a belated return for FY16-17 then you need to fill the applicable ITRs as notified for this FY only and not for any previous or later FY.

Is there is a penalty? 

No, the penalty for filing income tax return after due date is only applicable from FY 2017-18. The government had introduced a maximum late fee of Rs 10,000 for delayed filing of income tax return by individuals in the last budget presented in February this year. However, this fee is applicable with effect from April 1, 2018 and will not apply for returns filed for FY2016-17 for which the deadline as of now is July 31, 2017. 

However, it is important to note that if you have any unpaid tax liability, filing your return after the due date would result in a levy of penal interest on the unpaid tax calculated from the due date of filing the return till the actual date of filing. But if no tax is payable, the taxpayer won't be liable to pay this interest on unpaid tax due to the belated filing for FY16-17 only. However, if the income tax department on assessing your return raises demand for additional tax payment then you would have to pay penal interest on that tax as well as the additional tax. Therefore, it is advisable to file your return in time. 

What if I have filed my returns but there is an error? 

After an income tax return is filed, it is processed by the CPC, Income Tax Department. However, after processing, if an assessee realises that some income was not reported, or some deduction was not availed of in the return computation, it is possible to file a revised return. 

How much time do I get to verify my return? 

Merely filing your tax return is the job half done until you verify it. As per the present tax laws, you can verify your return within 120 days of filing it. 

Source: ET