Attention : Failing to file IT returns by last day will cost heavily

The Income Tax (I-T) Department have extended the last date for filing of individual Income Tax returns (ITRs) for FY 2019-20 or Assessment Year (AY) 2020-21 till the end of the calendar year i.e. December 31^st.

However, the taxpayers must also be aware that the failure in filing the returns by the last date will lead to the assessee penalised and also loses out on the tax benefits of the year. So, it is important to file ITR on or before the due date.      

(Also Read: IT filing due date extended to December 31)

Penalty for filing of ITR beyond the last date is as follows.

From 2017-18, a late filing fee is applicable if ITR is filed after the due date which for the current assessment year  2019-20 is December 31, 2020.   

The maximum penalty for filing ITR after the due date is Rs 10,000 under Section 234F of the Income Tax Act.  

From FY 2017-18, a late filing fee of Rs 5,000 will be applicable for filing ITR after the due date but before December 31 of the assessment year under the Section. This will not be applicable this assessment year as the extension is given till December 31. After December 31, a late fee of Rs 10,000 shall be charged.

However, in relief to small taxpayers, if the annual income of the assessee is not more than Rs 5 lakh then the penalty for missing the due date for filing ITR is Rs 1,000.ITR for a financial year should be filed within the prescribed due date for each year failing which interest shall be levied.

From FY 2017-18, late filing fee under Section 234A, the taxpayer will be levied an interest rate of 1% every month on delayed ITR.  

However more than the penalties, it has to be noted that the taxpayer will also have to forgo all deductions and tax exemptions availed for the year.