In yet another relief for taxpayers, the Income Tax (I-T) Department extended the last date for filing of individual Income Tax returns (ITRs) for FY 2019-20 or Assessment Year (AY) 2020-21 by another month till December 31.
This is the second time that the Central Board of Direct Taxes (CBDT) has extended the last date for filing of ITR for AY 2020-21.
Taxpayers need to be wary of the last date of filing ITR failing which not only is the assessee penalised but also loses out on the tax benefits of the year. So, it is important to file ITR on or before the due date.
Penalty for late filing of ITR
From 2017-18, a late filing fee is applicable if ITR is filed after the due date which for the current assessment year 2019-20 is December 31, 2020.
The maximum penalty for filing ITR after the due date is Rs 10,000 under Section 234F of the Income Tax Act.
From FY 2017-18, a late filing fee of Rs 5,000 will be applicable for filing ITR after due date but before December 31 of the assessment year under the Section. After December 31, late fee of Rs 10,000 shall be charged. However, in a relief to small taxpayers, if the annual income of the assessee is not more than Rs 5 lakh then penalty for missing due date for filing ITR is Rs 1,000
Interest on delayed ITR filing
ITR for a financial year should be filed within the prescribed due date for each year failing which interest shall be levied.
From FY 2017-18, late filing fee under Section 234A, the taxpayer will be levied an interest rate of 1% every month on delayed ITR.
Loss of tax benefits for the year
Other than penalties, the taxpayer will also have to let go off deductions and exemptions for that year.