The deadline to issue Form 16 to file an Income Tax Return (ITR) has been extended to 31 July, while the initial deadline was 10 July. Unfortunately, if you plan on filing the ITR by the last date, since it has now been extended, you might want to reconsider the situation, especially when you already have all the necessary documents.
In other words, shall you fail to file your pending ITR until the due date, you will have to pay a penalty and face certain restrictions when you file the belated return.
Speaking of Penalties
If you fail to file the tax return within the due date, you can still manage to file a belated return any time during the current assessment year (AY) 2019-20. Inspite of such extensions, you will have to pay a fine, or penalty of 5,000 if you file your return after the due date but before 31 December of the AY. This penalty will spike up to ?10,000 if you file it between 1 January and 31 March.
The threshold exemption limit is Rs 5 lakh. For those whose income is below Rs 5 lakh, the late fine is capped at Rs 1,000. The penalty along with the due tax needs to be paid before you submit your belated ITR. Also, this is not even close to getting rid of paying late taxes. Besides paying a penalty fee, you will have to pay interest on due taxes each month until you file your ITR. You will not be allowed to carry forward certain losses – capital loss or loss under income from house property – to next year.
Then there’s the infamous tax department. They can send you a notice, which can even lead to you spending some quality time at jail from a period of three months to two years if you fail to file your ITR. If the due tax exceeds Rs 25 lakh, the jail term can climb up to seven years.
Some ITR Forms You Must File to Avoid Hardships
- ITR 1: If you generate income from house or interest.
- ITR 2 : If you earn from salary or pension, income from rent, foreign income.
- ITR 3: For the ones running a business.
- ITR 4: For the ones shielded with presumptive income scheme under Sections 44AD, 44ADA, 44AE of the Income Tax Act.
- ITR 5: It is for firms, estates, trusts and endowments.
- ITR 6: For charities and religious bodies.
- ITR 7: For individuals or companies that fall under Sections 139 (4A or 4B or 4C or 4D) of the Income Tax Act.
All in all, it isn’t a good idea to dodge you ITR filing until the due date, in order to avoid the last-minute rush and glitches.
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