In the tumultuous period of Income Tax Return filing session, numerous taxpayers missed the August 31 deadline for Income Tax Return filing. Did you also miss it? Relax! If you missed the Income Tax deadline you do not need to feel panic about this as there is still a choice to file a belated ITR filing with penalty fee ranging from 5000 to 10,000. After Income Tax Department has furnished the new rule, from 2019 onward, those individuals filing returns after the last date is obligated to pay a late fee under section 234E Income Tax Act 1961. However, the amount of penalty will depend on the tax assesses earned income and the delay of filing ITR.
So, if you also missed the deadline for ITR filing, here’s the key point that one should keep in mind before filing a late ITR return-
What is belated income tax return?
If any individual fails to file their ITR before the due date can efile ITR under sector 139(4) of the Income tax act. The belated return can be filed before the end of the relevant assessment. This means that you can file a belated return for Financial Year 2018-19 by March 31, 2020, i.e., before the end of the current assessment year 2019-20.
As per CBDT, those taxpayers whose annual income is up to Rs. 5 lakh or below is liable to pay a penalty of Rs. 1000. This late will be imposed in addition to any tax liabilities. This decision has been taken by the Income Tax Department with a motive to encourage taxpayers to file their taxes on time.
- According to Income tax administration website incometaxindia.gov.in, any taxpayer who has not filed ITR before the due date of the income tax return can furnish the return of their income at any time before 31.03.2020 or the end of the relevant assessment year 2019-20.
- A penalty will be imposed for every belated income tax return filing under section 234F.
- As per the income tax rule, a fine of Rs. 5000 will be levied on individuals if they file ITR after the due date but before December 31, 2019.
- The penalty increases to Rs 10,000 if the taxpayers file the return next year between January 1, 2020 to March 31, 2020.
- Those who have Gross Total Income below Rs 5 lakh are required to pay Rs 1,000 for filing ITR after the due date.
Meanwhile, this year the efiling of Income Tax Return department has made a tremendous world record as over 5.65 crore income tax returns were filed by the taxpayers. It has shown a 4 percent rise in ITR Filing over the previous year.