If you have missed the August 31 deadline for filing income tax return, here is what will happen now. Further, there is an option to file the ITR after the due date of August 31, 2019, deadline.
KEY HIGHLIGHTS
- Until AY 2018, there was no penalty for filing belated. Starting from AY 2019, penalty is levied on belated returns
- Income tax returns filed after the due date of August 31, but before December 31, 2019, will attract a penalty of Rs 5,000
New Delhi: The last for filing an income tax return (ITR) for the financial year 2019 was August 31, 2019. If for some reason you could not manage to file your ITR for the assessment year 2019-2020 (AY2020), here is what will happen. Also, there is an option to file the ITR after the due date of August 31, 2019, deadline.
Penalty-
It may be noted that until AY 2018, there was no penalty for filing belated ITR. However, starting from AY 2019, penalty is levied on belated returns. Government inserted a new Section 234F into the Income Tax Act, under which an individual would be required to pay a fee of up to Rs 10,000 for filing return after the due dates as per Section 139 (1) of the Income Tax Act.
However, the tax department allows taxpayers to file their return for the assessment year 2019-20 (AY20) till March 31, 2019, with a penalty. According to the income tax rules, income tax returns filed after the due date of August 31, but before December 31 of the assessment year, will attract a penalty of Rs 5,000. Taxpayers who miss December 31 deadline for filing ITR as well, will have to pay Rs 10,000 as a penalty. This penalty is for those taxpayers who have an income above Rs 5 lakh a year.
For taxpayers earning, below Rs 5 lakh per annum but more than Rs 2.5 lakh, Rs 1,000 penalty will be levied for missing the deadline. As per the income tax slabs applicable for the FY19, resident individuals below 60 years with total income up to Rs 2.5 lakh are exempted from tax. Senior citizens aged 60 years and above but less than 80 years with total income up to Rs 3 lakh are also exempted from tax. Similarly, super senior citizens aged 80 years and above with total income of Rs 5 lakh are also not liable to pay tax.
Belated income tax return-
Along with the penalty, you can file belated income tax return. An ITR filed after the due date is belated return. It can be filed before the end of the assessment year i.e. before March 31, 2019. It may be noted that from FY16-17 (Assessment year 2017-18) onwards, you are allowed to revise a belated return as well. The process of filing a belated return is the same as filing the return on or before the due date.
