Income Tax Return penalty: How much you will have to pay for missing December 31 deadline
Income Tax Return penalty: While you can file the income tax returns on or before March 31, 2020 – a late fee will be levied on those who decide to complete the process after December 31, 2019 – the deadline set by the income tax return department for filing belated income tax return (ITR 2018-19). The deadline to file ITR for financial year 2018-19 was set as August 31 and any ITR filed after that will be considered as belated ITR. The initial deadline was set as July 31 but was later extended by the income tax department.
How much penalty you will have to pay?
As mentioned above, all the taxpayers who file the belated ITR after December 31, will have to pay a hefty penalty. The law of late filing fees under Section 234F of Income-Tax Act, 1961 was introduced in Budget 2017 and has come into effect from FY18 or assessment year 2018-19 onwards.
According to this act, if an individual files belated ITR on or before December 2019, he or she will require to pay Rs 5,000 as penalty while filing it after December 31, 2019, but before or on March 31, 2020, will make you pay Rs 10,000 as fine.
Who will be exempted?
If your total income doesn’t exceed Rs 5 lakh, then the maximum fees you are liable to pay is Rs 1,000. Resident individuals who are below 60 years with total income up to Rs 2.5 lakh are exempted from tax. While senior citizens aged 60 years and above but less than 80 years with total income up to Rs 3 lakh are exempted from tax.
However, super senior citizens who are 80 years and above, total income of Rs 5 lakh is tax-exempt.