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ITR 2019-20: What Are The Penalties Applicable On Late Filing Of ITR?

For the 2019-20 financial year, the last income tax return filing date was 10 January 2021. Recently, when an official order was issued, the income tax department denied appeals for a further extension of the due date for the submission of tax returns, claiming that sufficient additional time had already been given. In the aftermath of the Covid-19 outbreak, the deadline was extended many times. Usually, the last date for filing the income tax return is 31 July of the assessment year (AY).

It was extended 3 times this year. And now, if you have not filed your tax return, you still have time to submit a late or late ITR. A tax return on income submitted after the time limit is recognized as a late return. In the event that you file a late return, you will have to pay a late filing charge. As the last date was extended over 31 December, the penalty will be Rs 10,000. In particular, the last date for filing income tax return per year is 31 July of the specific appraisal year.

If you skip the ITR time frame, a fixed penalty of Rs 5,000 is imposed when you submit late returns before 31 December of the assessment year and Rs 10,000 is filed between 31 December and 31 March of the assessment year in the case of return. For salaried employees with income of up to Rs 5 lakh, a penalty of Rs 1,000 is effective until 31 March in the event of a delayed ITR filing. Before you file your belated ITR, the penalty must be paid along with the required tax. Note that, regardless of whether or not any tax is due, you can not end paying a levy on a late return.

In addition to paying a penalty, every month you are still required to pay interest on due taxes before you file an ITR.You will even not be able to bring forward those expenses for set-off into future years. For example, if the return is missed, capital loss that is loss on sale of capital assets and or loss under the head profits and gains of business or profession will not be carried forward. You can gain interest on the refund received if any tax refund is due and the ITR is filed within the stated period. A refund is received as, as per Section 244A of the Income-tax Act, 1961, excess tax is charged on your income during the year.

That being said, in the case of late returns, as interest may be accrued from the time of submission of the return, you may forfeit a part of the interest owing on the amount of the refund. If you submit your return within the due date, interest on the refund due will be paid from 1 April onwards. Note that the tax authority will give you a notice if you forget to file your ITR at all and it can also lead to litigation. If you fail to file your ITR, there is a jail term clause of three months to two years. Also, the punishment will be up to seven years if the due tax is more than Rs 25 lakh.      

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