Income Tax Return for AY 2020-21: Late filing can attract a fine up to ₹10,0001 min read . Updated: 25 Oct 2020, 02:02 PM IST
- In normal circumstances, if the return is filed later than December 31, a late filing fees of ₹10,000 is payable
- However amount of late filing fees to be paid cannot exceed ₹1,000, if total income does not exceed ₹5 lakh
In a major relief to taxpayers, the Central Board of Direct Taxes (CBDT) on Saturday extended the deadline for filing income-tax returns (ITR) for FY 2019-20 (AY 2020-21) for the second time by a month till 31 December, 2020. It is important to file your taxes on or before the due date as delayed filing will have its consequences. Along with penalties, late filing will also take away many tax benefits from the tax payer. Taxpayers should avoid the practice of filing belated return. Following are the consequences of delay in filing the return of income by a tax payer:
Penalties in case of delayed filing of ITR
Levy of interest under section 234A: The taxpayer is liable to pay simple interest at 1% per month or part of a month for delay in filing the return of income.
Late filing fees: Section 234F of the Income Tax Act levies a late filing fees for return filed from AY 2018-19 onwards. If return is filed after due date but before December 31st of the assessment year, a late filing fee of ₹5,000 is charged. If the return is filed later than December 31, a late filing fees of ₹10,000 is payable. However amount of late filing fees to be paid cannot exceed ₹1,000, if total income does not exceed ₹5 lakh.
Lower taxation benefits
Along with penalty, a tax payer will also have to let go of certain exemptions and deductions for that year. The exemptions and deductions which will not be available if ITR is filed late are as below:
> Exemptions under section 10A, section 10B to the new establishments are not available
> Deduction under 80-IA, 80-IAB, 80-IB, 80-IC , 80-ID and 80-IE, in respect of profits and gains from industrial undertakings or enterprises engaged in infrastructure development, are not available
>Deduction under 80IAC, 80IBA, 80JJA, 80JJAA, 80LA, 80P, 80PA, 80QQB and 80RRB are not available