The Central Board of Direct Taxes (CBDT) has extended the deadline for filing ITR for the financial year 2020-21 once to 31 December 2021.
After passing the deadline of December 31, a fine of Rs 5,000 will have to be paid for filing ITR.
Income Tax Penalty: If you have not filed your Income Tax Return (ITR) yet, file it as soon as possible. However, you have a chance till 31 December 2021. But if you miss this deadline, you may have to pay a penalty.
It is important to file ITR on time, if you miss then you have to pay penalty in broadly two ways. Let’s tell you.
Penalty for late filing of ITR
As you know, the Central Board of Direct Taxes (CBDT) has extended the deadline for filing ITR for the financial year 2020-21 once to 31 December 2021. After passing the deadline of December 31, a fine of Rs 5,000 will have to be paid for filing ITR. Earlier this deadline was 30 September, but due to glitches in the portal, it has been pushed forward.
Penalty like this
Till last year the penalty amount was Rs 10,000, but from this year it has been reduced to Rs 5,000. Till the last financial year, it was a rule that if someone filed ITR late between August 1 and December 31, then he would have to pay a fine of Rs 5,000. At the same time, if someone files ITR late between December 31 and March 31, then he will have to pay a fine of Rs 10,000. Now the maximum amount of penalty for late filing of ITR in the current assessment year has been increased to Rs 5,000.
Relief to small taxpayers
Penalty will be levied on everyone for late filing of ITR, but small taxpayers have been given some relief in the amount of penalty. If someone’s annual income is less than Rs 5 lakh, then he will have to pay a penalty of Rs 1,000 for late filing of ITR. Income tax is not payable on annual income less than Rs 5 lakh.
Interest penalty on outstanding tax
Under section 234A of the Income Tax Act, if a person owes tax of more than Rs 1 lakh, then he will be liable to a penalty of 1% every month. This penalty will continue to be levied till he files ITR.
What is belated and revised return
If you forget to file ITR in any year, you can file your return later. This is called belated ITR. Earlier it used to get 2 years to fill it, but now penalty has been imposed on it. Such taxpayers can file their return only when they get a notice from the Income Tax Department.