Penalties you pay on lacking ITR submitting deadline this 12 months

NEW DELHI: Paying tax on revenue yearly is the authorized obligation of each taxpayer. If a taxpayer fails to file revenue tax returns (ITR) throughout the mandated deadline of an evaluation 12 months, there’s penalty to be paid. 

These are the assorted penalties one has to pay on lacking the ITR submitting deadline:

Penalty on late submitting

For the monetary 12 months 2020-21, the Central Board of Direct Taxes (CBDT) has prolonged the due date of submitting ITR to 31 December of this 12 months. Filing ITR after this date will entice a penalty of ₹5,000.

Maximum penalty on late submitting was ₹10,000 till final 12 months, which has been diminished to a most Rs5,000 starting this evaluation 12 months. Until final 12 months, submitting belated ITR between 1 August and 31 December attracted penalty of ₹5,000, whereas returns filed after 31 December however earlier than 31 March attracted larger penalty of ₹10,000.

Beginning present evaluation 12 months, the utmost late submitting penalty has been capped at ₹5,000.

If your taxable revenue falls beneath the exemption restrict of ₹5 lakh, you’ll be liable to pay ₹1,000 in late payment.

Interest penalty on excellent tax

Under part 234A of IT Act, a taxpayer with an impressive tax legal responsibility above ₹1 lakh is slapped with a month-to-month curiosity penalty of 1% on the excellent tax quantity till she information her belated ITR. This quantity is calculated after decreasing advance tax, TDS and aid claimed below part 89 to 90Aetc already paid.

Even although the date of submitting ITR for final fiscal has been prolonged to 31 December 2021, this curiosity penalty will likely be levied on defaulters from the unique due date of 31 July. This implies that submitting ITR between 1 September and 31 December won’t entice late submitting payment of ₹5,000 however you’ll have to cough up curiosity on the pending tax legal responsibility.

The authorities has excused small taxpayers with tax legal responsibility beneath ₹1 lakh from this penalty.

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