Starting April, tax payers will not have the flexibility to file returns for the previous financial year till end of March in the assessment year by paying the higher late fee of ₹10,000. The chance for filing returns with a late fee expires by December end. Accordingly, the fee is capped at ₹5,000.
The Finance Act, however, retained the concessional late fee for those with income of up to ₹5 lakh at a maximum of ₹1,000.
The idea is that concluding the return filing earlier will enable the tax department to process returns and issue refunds quickly to all eligible tax payers. Authorities have been taking extra efforts to issue refunds as quickly as possible as part of making return filings and tax payments as painless and convenient as possible.
The Finance Act also introduced a late fee of ₹1,000 for delayed intimation of Aadhaar number to the department. The move is to encourage linkage of biometric identification number with the Permanent Account Number.