Test your knowledge about filing delayed tax returns. Take this fun quiz to improve your tax quotient and avoid tax filing mistakes.
1. What was the revised deadline for filing tax returns for the financial year 2012-13?
a. July 31, 2013 b. August 1, 2013 c. August 5, 2013
Wrong Try again..
Wrong The correct answer is c. Actually, the deadline for filing tax returns for the financial year 2012-13 was July 31, 2013. The government, however, extended this deadline to August 5 as many taxpayers faced difficulties accessing the income tax department's web site, expressed their inability due to non-availability of Form 16s etc.
Correct! Actually, the deadline for financial year2012-13 was July 31, 2013. The government, however, extended this deadline to August 5 as many taxpayers faced difficulties accessing the income tax department's web site, expressed their inability due to non-availability of Form 16s etc.
QUIZ: Test your gyaan on delayed TAX returns!
August 14, 2013 09:44 IST
2. If you have missed the August 5 deadline too, what options do you have now?
a. Don't file tax returns at all b. Wait for the government to further set a new deadline c. I know, I can still file my tax returns
Wrong Try again..
Wrong The correct answer is c. You can still file your tax returns by March 31, 2014. But there will be a cost: penal interest charge, we mean.
Correct! You can still file your tax returns by March 31, 2014. But there will be a cost: penal interest charge, we mean.
QUIZ: Test your gyaan on delayed TAX returns!
August 14, 2013 09:44 IST
3. What will be the penal interest charge if you file your tax returns for the FY 2012-13 by March 31, 2014?
a. It will be 5 per cent of tax due calculated for every month of delay b. It will be 1 per cent of tax due calculated for every month of delay c. It will be 15 per cent of tax due calculated for every month of delay
Wrong Try again..
Wrong The correct answer is b. Don't fret. The government understands your difficulties. Under Section 234 (A), the Income Tax department will charge you just one per cent penal interest on your due tax. For instance, if your tax liability for financial year 2012-13 comes to Rs 1,000, you will have to pay a penal interest of only Rs 10. That is, your total tax payment will come to Rs 1010 (Rs 1000 as your actual tax due + Rs 10 as the penal interest) if you file your tax return by August 31, 2013. However, if you delay it by say six months then the penal interest will be Rs 60 and the total tax payable will come to Rs 1060 (Rs 1000 as your actual tax due + Rs 60 as the penal interest).
Correct! Don't fret. The government understands your difficulties. Under Section 234 (A), the Income Tax department will charge you just one per cent penal interest on your due tax. For instance, if your tax liability for financial year 2012-13 comes to Rs 1,000, you will have to pay a penal interest of only Rs 10. That is, your total tax payment will come to Rs 1010 (Rs 1000 as your actual tax due + Rs 10 as the penal interest) if you file your tax return by August 31, 2013. However, if you delay it by say six months then the penal interest will be Rs 60 and the total tax payable will come to Rs 1060 (Rs 1000 as your actual tax due + Rs 60 as the penal interest).
QUIZ: Test your gyaan on delayed TAX returns!
August 14, 2013 09:44 IST
4. What if you miss the March 31, 2014 deadline?
a. Then, you can't file the tax returns for FY 2012-13 at all b. You can file the tax returns but there will be a huge penalty c. The Income Tax department will label you a defaulter
Wrong Try again..
Wrong The correct answer is b. Surprised, you can still pay tax. Cheers, lazy bum! If you miss the deadline of March 31, 2014 you can still file your returns for financial year 2012-13 by March 31, 2015.
Correct! Surprised, you can still pay tax. Cheers, lazy bum! If you miss the deadline of March 31, 2014 you can still file your returns for financial year 2012-13 by March 31, 2015.
QUIZ: Test your gyaan on delayed TAX returns!
August 14, 2013 09:44 IST
5. Apart from the 1 per cent penal interest are there other costs involved if you file your returns after March 31, 2014 deadline but before March 31, 2015?
a. You will not be entitled to revise your tax filing even if you goof up in filing your tax returns form after missing the deadline b. There will be a hefty penalty of Rs 5,000 c. All of above
Wrong Try again..
Wrong The correct answer is c. Of course, there is no such thing as a free lunch. Apart from the one per cent penal interest other costs involved are:
You will not be entitled to revise your tax filing even if you goof up in filing your tax returns form after missing the deadline
You may have to shell out Rs 5,000 as penalty charge, at the discretion of the tax officer, if you file your FY 2012-13 returns between financial year 2014 and 2015.
In addition to the above two costs, you will also not be allowed to carry forward trading or short-term capital losses to the next financial year and offset them against any capital gains you make.
Correct! Of course, there is no such thing as a free lunch. Apart from the one per cent penal interest other costs involved are:
You will not be entitled to revise your tax filing even if you goof up in filing your tax returns form after missing the deadline
You may have to shell out Rs 5,000 as penalty charge, at the discretion of the tax officer, if you file your FY 2012-13 returns between financial year 2014 and 2015.
In addition to the above two costs, you will also not be allowed to carry forward trading or short-term capital losses to the next financial year and offset them against any capital gains you make.
