The maximum penalty for late filing of ITR at the beginning of the current assessment year has been capped at Rs 5,000. If your taxable income is less than the exemption limit of Rs 5 lakh, you will be paid a late fine of Rs 1,000.
It is the legal duty of the taxpayers to pay income tax every year. If a taxpayer fails to file Income Tax Return (ITR) within the mandated time limit of a specified year, he has to pay penalty. Various penalties have been provided for missing the ITR filing deadline.
Think late ITR filing penalty
central direct fiscal 2020-21 Board of CBDT has extended the filing ITR last date 31 this year Disnbr K Filing ITR after this date will attract a penalty of Rs 5,000. The maximum penalty for late filing till last year was Rs 10,000, which has been reduced to a maximum of Rs 5,000 at the beginning of this assessment year.
Till last year, late ITRs filed between August 1 and December 31 attract a penalty of Rs 5,000, while returns filed after December 31 but before March 31 attract a penalty of Rs 10,000 more. At the beginning of the current assessment year, the maximum penalty for late filing has been capped at Rs 5,000. If your taxable income is less than the exemption limit of Rs 5 lakh, you will have to pay a late fine of Rs 1,000.
Interest Penalty on Outstanding Tax
Under Section 234A of the IT Act, taxpayers with outstanding tax liability of more than Rs 1 lakh are levied a monthly interest penalty of 1 per cent on the outstanding tax amount, unless he files his late ITR. Gives. This amount is calculated after deducting the claim of advance tax, TDS and relief already paid under sections 89 to 90A etc.
Even though the date for filing ITR for the previous financial year has been extended till December 31, 2021, this interest penalty will be levied on the defaulters from the original due date of July 31. This means that for filing ITR between September 1 and December 31, there will be no late filing fee of Rs 5,000, but you will have to pay interest on the pending tax liability. The government has waived off this fine for small taxpayers who pay less than Rs 1 lakh.