IT Returns Extended Till December 31, But Rs 10,000 Penalty If This Happens
Now the new income-tax returns (ITR)filing date for FY 2019-20 (AY 2020-21) till 31 December, 2020, in efforts to provide relief to the taxpayers.
A Relief To The Taxpayers
It’s the second time this year that the finance ministry has extended the deadlines of filing ITR for the financial year 2019-20.
“In view of the challenges faced by taxpayers in meeting the statutory and regulatory compliances due to the outbreak of COVID-19,” said CBDT.
Prior to this, the CBDT had provided the taxpayers time till November 30 to file the returns.
In case of the taxpayers whose accounts need to be audited, the ITR filing deadline has been extended by two months till 31 January, 2021.
With the extension in picture, it is utmost important to file your taxes on or before the due date as the delay will attract the further consequences.
Not only taxpayers will have to face penalties, but late filing will also take away many tax benefits from the taxpayer.
In any case, taxpayers should cease from practice of filing belated returns to get benefits attached with filing on time.
Delayed ITR Filing Penalties
In case of late filing the taxpayer is liable to pay simple interest at 1% per month or part of a month for the delay in filing the return of income considering Levy of interest under section 234A.
In addition to that late filing fees for return filed from AY 2018-19 onwards will be applicable under Section 234F of the Income Tax Act levies.
If return is filed after the due date but before December 31st of the assessment year, a late filing fee of ?5,000 is charged.
If the return filing date is after December 31 then a late filing fee of Rs 10,000 will be applicable.
Please note here that the amount of late filing fees to be paid cannot exceed Rs 1,000, if total income does not exceed Rs 5 lakh.
Reduced Taxation Benefits
On delayed tax filing, the taxpayer will have to let go some of the taxation benefits which includes exemptions and deductions for that year.
The exemptions under section 10A?, section 10B to the new establishments will not be applicable.
All the deductions under 80-IA, 80-IAB, 80-IB, 80-IC , 80-ID and 80-IE will not be available.
Basically, these are applicable to the profits and gains from industrial undertakings or enterprises engaged in infrastructure development.
All the deductions under 80IAC, 80IBA, 80JJA, 80JJAA, 80LA, 80P, 80PA, 80QQB and 80RRB will not be available.