What if you miss March 31

Act now

Nobody likes missing deadlines, especially if they have been set by the taxman. Yet, thousands of taxpayers are unable to wrap up their income-tax planning by March 31. Over the past two weeks, we have received several queries on income tax from our readers. Some want to know if they have calculated their tax liabilities correctly, others are worried if they will face penal action because of non-payment of tax by due date. There are also those who have overpaid income tax because of haphazard planning.

Our advice to all such people: act now to get things in order, but there is no need to panic. The tax department will not issue a notice just because you are a few weeks late. Similarly, if you have paid excess tax, don't worry. You can get a refund after you file your incometax return.

If for some reason you were unable to pay the tax that was due on income during the previous financial year, you can do so now by paying a small penal interest. The taxman charges a nominal 1% on the unpaid tax for every month of delay. So, if you have to pay Rs 15,000, you will be charged only Rs 150 as interest if you pay in April. But prevention is better than cure. We look at five common reasons that lead to underpayment or overpayment of tax and how you can avoid them this year.

Text: By Babar Zaidi

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