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If you have missed to File your Income Tax Return within the extended deadline, don’t worry, you still have a chance to file it. An income tax return which is filed after the extended deadline is called a ‘Belated Return’. Howbeit, there are a few aspects you have to note before you use this last chance (Belated Return).
Belated Income Tax Return
If an individual or any taxpayer fails to file their Income Tax Return on or before the due date, then under the section 139(4) of the Income-tax Act, he can file after the due date and it termed as belated return.
Deadline to file belated Income Tax Return
You can file belated return any time before the end of the applicable year or before the completion of assessment, but earlier is better. If you are filing a belated return for the Financial Year 16-17, then you have to fill the applicable Income Tax Returns as advised for the same Financial Year, and not for any other year’s ITRs (previous or later FY). An individual can file the belated return for Financial Year Y2018-19 by or before March 31, 2020, that is before the end of the current assessment year (AY2019-20).
According to the amendments in the Finance Act, 2017, an individual or any taxpayer who are filing belated return need to pay their penalty. As per this rule, any individual or any taxpayer who files a belated return has to pay the penalty to the income tax department. Actually, the deadline to file your Income Tax Return for the Financial Year 2018-19 was 31 August 2019. If you failed to file your ITR on time then it will end with a penalty, and also it will lead to a few other consequences and inconveniences which you have to understand due to the delay. Here let us discuss all these in detail below.
Penalty for Late Filing
According to the updated rules of the Income Tax Act, under section 234F notifies that filing your Income-tax Return after the deadline, then you are liable to pay a maximum penalty of Rs 10,000 and this rule came into effect from 1 April 2017. To make it clear; if you file ITR after 31 August but before December of the same year then you are liable to pay penalty of Rs 5000. For income tax returns which are filed after December of the same year, the penalty amount will be increased to Rs 10,000. And, there is somewhat good relief for small taxpayers, Yes, the IT department has notified if the total income of the taxpayer is not more than Rs 5 lakh, then the maximum penalty charged for their ITR delay will be Rs 1000.
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Belated Return penalty Details
|Income Tax Return E- Filing Date||Total income Below Rs 5,00,000||Total income Above Rs 5,00,000|
|31st August 2019||Rs 0||Rs 0|
|Between 1st Sep 2019 to 31st Dec 2019||Rs 1,000||Rs 5,000|
|Between 1st Jan 2020 to 31st March 2020||Rs 1,000||Rs 10,000|
Time for Editing Your Return
As per the changed rules, time for editing tour ITR return has been reduced, say, for example, if you are filing your Income Tax Return with a mistake, you have time only till the end of the relevant Assessment year to edit your ITR (for ITRs from FY 2017-18). Before, this rule is not there and the taxpayers had about 2-year long window to edit or change and resubmit the ITR without any mistakes. This has been reduced now to one year from the end of the FY. Therefore it means that the earlier you file your ITR, the longer availability of the window will be with you to edit your ITR returns to correct the errors if any.
Interest for Late Filing
If you fail to file your income tax returns on or before the due date, you are liable to pay interest at the rate of 1% for part of a month or every upcoming month, on the amount of income tax which is unpaid under the section 234A. Therefore it is important to understand that any individual’s ITR cannot be filed if he has any unpaid tax amount. And the calculation of penalty for ITR will start soon after the due date i.e. from 31 July and for the current year i.e. FY 2018-19; the date is from 31 August 2019. So, it is clear that the longer you hold back the more penalty amount you have to pay.
Carry Forward of Losses is not allowed
If the taxpayer has suffered any losses during the year say, any loss in your business or a loss under the head Capital Gains, make a point that you file your IT return before the due date. If not, the return filer is not permitted to carry forward these losses even after paying all taxes in time.
Just in case you are eligible to receive a refund from the Income Tax department for paying excess amount of taxes, you need to File your Income Tax return before the due date to get the refund at the earliest.