Bangalore: The last date for filing tax returns for most individuals for this financial year is July 31. It is always advisable to file tax returns before the due date. Tax returns can be filed later also that is before the end of the relevant assessment year which is March 31 of 2013.

Amarpal Chadha, Tax Partner, Ernst and Young told The Economic Times, “In case there are any taxes payable (after considering TDS, advance taxes and other credits available), any failure to file the returns of income within the due date would attract interest at the rate of 1 percent per month for the delay in filing the returns.”

If there is any delay in filling the returns then there will be an increase in the payable interest for default of the advance tax. Economic Times came up with the reasons why one should file their tax return before the due date.

The Right to carry forward losses

If the returns is filed late, then the loss under the head ‘Profits and Gains of Business or Profession’ cannot be carried forward. Vaibhav Sankla, Director, H and R Block India says, “However, one can still set-off the losses against the income (other than income under the head salary) under other heads of the same year.”

Even in the case of any short term or long term capital loss from sale of shares the same applies. Chadha of Ernst and Young says, “The same can be carried forward and set off against capital gains or business profits, which may arise in the next eight years. However, if the tax returns are not filed by the due date of July 31, 2012, the above benefit will not be available.”