ARE YOU A SENIOR CITIZEN? KNOW WHAT HAPPENS IF YOU FAIL TO FILE ITR BY 31ST DECEMBER
According to the law, a senior citizen is an individual resident between the age group of 60 to 80 years, as on the last day of the previous financial year.
In India the majority of older persons face financial hardship in old age as most of them are not in a position to earn their livelihood. Their savings, if any, are not enough to meet their day to day, particularly the medical expenses. Older persons with good net-worth value are in search of good short-term financial planning to earn a good income from their finance. The Income Tax law provides various benefits to senior citizens in India with the view to mitigating their issues.
The basic tax exemption limit for normal citizens below 60 years of age is Rs 2.5 lakh in a financial year. But for Senior Citizens, the exemption limit is Rs 3 lakh, while for Very Senior Citizens, the limit is Rs 5 lakh.
So, a Senior Citizen doesn’t have to pay any tax or file ITR in case the annual income is up to Rs 3 lakh and no TDS is deducted during the financial year. Similarly, a Very Senior Citizen is exempted from paying tax and filing ITR if his/her annual income is up to Rs 5 lakh and no TDS is deducted.
Who is considered as a Super Senior Citizen in India?
A super senior citizen is an individual resident who is above 80 years, as on the last day of the previous financial year.
What is the due date for filing ITR for FY 2019-20?
The original due date for submitting ITR for the assessment year 2020-2021 relevant to financial year 1st April 2019 to 31st March 2020 was 31st July 2020. However, the same was extended till 31st December 2020 due to pandemic Covid19.
What will happen if Senior Citizens missed filing ITR for FY 2019-20 by 31st December?
In case one fails to submit the ITR by the due date, one can still file it by the last date. Even though the due date for submitting ITR for assessment year 2020-2021 is 31st December 2020, the last date is 31st March 2021.
In case senior citizens fail to submit their current ITR by 31st December 2020, they can still do so by 31st March 2021. However, they may have to face the below-mentioned consequences:
Penalty for Late Filing u/s 234F:
For returns filed after December 2020, penalty will be Rs 10,000. However, as a relief to small taxpayers, the IT department has stated that if your total income is not more than Rs 5 lakh, the maximum penalty levied for delay will only be Rs 1000.
Carry forward of losses not allowed
Liable to interest on tax liability
Liable to pay Late Fees and Penalty
Interest on refund u/s 244A may be lost
According to Section 244A, where a 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:
Assessment under Section 144
The assessee will be liable for best judgement assessment under Section 144 of the Income Tax Act. According to Section 144, the Assessing Officer, after taking into account all relevant material which he has gathered, is under an obligation to make an assessment of the total income or loss to the best of his judgement and determines the tax payable by the assessee in the following cases:-
where any person fails to make a return under Section 139(1) and has not made a return or revised return under Section 139(4) or Belated Return under Section 139(5)
where any person:-
Liable to receive notice of prosecution under Section 276CC
The offence under Section 276CC, prima facie, stood constituted upon failure on the part of the assessee to furnish the return of income for the assessment year in question within the period prescribed in law.
Copyright © 2019 - All Right Reserved