Recently, the CBDT extended due date for filing of ITRs and Audit Reports to 15 October 2018. However, there shall be no extension of the due date for the purpose of section 234A (Explanation 1) of the I.T. Act, 1961 pertaining to Interest for defaults in furnishing return, and the assessee shall remain liable for payment of interest as per provisions of section 234A of the Act.
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It means the ITR may be filed on or before 15 October 2018 (without late fee u/s 234F of Rs. 1,000/5,000) but the tax liability shall be paid upto 30 September 2018 as the due date of filing ITR is extended, not the tax payment date. So if the whole amount of tax payable under the ITR is paid upto due date (30 September 2018) of filing ITR, then no Interest u/s 234A will be levied even ITR is filed late.
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Here is the impact of extension of due date:
1. Expenses covered under section 43B of Income Tax Act, 1961 (payment basis allowance) will be allowed if paid on or before 15.10.2018.
2. No Disallowance of expenses (100% or 30% of expense) will be there if TDS will be paid (which has already been deducted till 31.03.2018) till 15.10.2018.
3. PGBP Loss and Capital Gains loss can be carried forward even ITR is filed till 15.10.2018.
4. No Late Fees u/s 234F (Rs. 1,000/5,000) will be there in case ITR is filed till 15.10.2018.
5. Profit Linked deductions (Section 80-IA to 80-IE), deduction under Section 10AA of the Income Tax Act, 1961 will be allowed even if ITR is filed till 15.10.2018.
[So, it's better to pay your taxes till 30.09.2018 in order to save interest u/s 234A of the Act and file the ITR till 15.10.2018.]
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