LAST DATE TO FILE INCOME TAX RATE IS 31ST MARCH FOR F.Y 2019-20
An income tax return (ITR) is basically a document that is filed as per the provisions of the Income Tax Act, reporting one’s income, profits and losses and other deductions as well as details about tax refund or tax liability. The deadline for filing Income Tax Return for corporate and other assessee’s who are to get their accounts audited under Income Tax Act 1961 or under any other law for the time being in force is 30th September and for others, it is 31st July every year as have been prescribed under the Act.
However, with the ongoing COVID -19 pandemic a lot of income tax due dates were extended by the Central Government. Only few days are left for the assessment year 2020-21 to end on 31 March 2021. This is the last chance for taxpayers to file their income tax returns (ITR) for the same. Taxpayers can file their ITR by 31 March 2021. After this, they may have to pay heavy fine as a consequence. Taxpayers who haven’t filed their ITR for financial year 2019-20 can also do it by 31st March, along with the late fee stated by the Income Tax Department.
Is there any penalty if one files their income tax returns after the due date?
If a taxpayer fails to the file the income tax return within the prescribed time limit, he would be liable to pay late fees for such default as per provisions of section 234F of the Income Tax Act.
Section 234F gets attracted if the following conditions are satisfied:
What are the Late Fees and Penalty under Section 243F?
What are the other effects of not filing ITR before the due date?
Liable to interest on tax liability
If you don’t file your ITR, the belated return could lead to extra interest on monthly basis for the remaining tax payable by you.
Interest under section 234A is levied for delay in filing the return of income
Taxpayer will be liable to pay simple interest at 1% per month or part of a month for delay in filing the return of income from the period commencing on the date immediately following the due date of filing the return of income and ending on the date of furnishing the return of income, or in case where no return has been furnished, on the date of completion of the assessment under section 144.
Interest on refund u/s 244A may be lost
According to Section 244A, where refund of any amount becomes due to the assessee, he shall, be entitled to receive, in addition to the said amount, simple interest thereon calculated in the following manner, namely:
where the refund is out of any tax paid by way of advance tax or treated as paid, during the financial year immediately preceding the assessment year, such interest shall be calculated at the rate of 1.5% for every month or part of a month comprised in the period from the 1st of April of the assessment year to the date on which the refund is granted
in any other case, such interest shall be calculated at the rate of 1.5% for every month or part of a month comprised in the period or periods from the date or, as the case may be, dates of payment of the tax or penalty to the date on which the refund is granted.
The taxpayer will not be entitled to any interest on refund, if the proceedings resulting in the refund are delayed for the reasons attributable to the taxpayer or the deductor (whether wholly or in part). In such a case, where the taxpayer has not filed ITR on time; interest on refund u/s 244A may be lost as delay in filing is attributable to the taxpayer for the period by which they had filed late return.
Best Judgment Assessment under Section 144
where any person:-
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