{"id":6584,"date":"2020-11-10T06:28:48","date_gmt":"2020-11-10T06:28:48","guid":{"rendered":"https:\/\/kredx.com\/blog\/?p=6584"},"modified":"2023-10-26T05:52:13","modified_gmt":"2023-10-26T05:52:13","slug":"putting-off-income-tax-return-filing-be-prepared-for-heavy-fines","status":"publish","type":"post","link":"https:\/\/www.kredx.com\/blog\/putting-off-income-tax-return-filing-be-prepared-for-heavy-fines\/","title":{"rendered":"Putting Off Income Tax Return Filing? Be Prepared For Heavy Fines"},"content":{"rendered":"

Filing <\/span>income tax returns<\/b> is an essential task for taxpayers.\u00a0<\/span><\/p>\n

Almost every taxpayer is aware of the repercussions of delaying their ITR filing. Typically, a delay on the part of taxpayers<\/a>\u00a0subjects them to high interest and penalty charges. Even though the due date of ITR filing has been postponed from 31<\/span> July to 31 December for 2020, we suggest you file your <\/span>income tax returns<\/b> before the last date, to avoid penalty and other complications.<\/span><\/p>\n

Read on to find out the consequences of delaying or missing out on the ITR filing date!<\/span><\/i><\/p>\n

What Happens When You File ITR Late?<\/b><\/h2>\n

These pointers below explain the repercussions of delaying income tax return filing \u2013<\/span><\/p>\n

Penalty Charge<\/b><\/h3>\n

Under Section 234, filing ITR post due date attracts a late penalty. Typically, in a year when the due date is 31 July, taxpayers can file their ITR by 31 December. However, in such a case, you will have to pay a late fine of Rs. 5000. Beyond this, you will be required to pay a penalty of Rs. 10000. <\/span><\/p>\n

However, if your annual income is not more than Rs. 5 lakh, the late fine amount will be limited to Rs. 1000. Since this fiscal year is an exception, the late penalty of Rs. 5000 is inapplicable altogether. Notably, post 01 of January and until 31 July, the penalty will be applicable again. So, ensure to file your ITR on time without getting into such liabilities.\u00a0<\/span><\/p>\n

Interest Charge<\/b><\/h3>\n

Salaried individuals will be required to pay interest under Section 243B, if they have an unpaid <\/span>tax <\/b>amount.\u00a0 Notably, if an individual has paid a portion of due tax either on or before 30 June 2020, they would pay an interest of 0.75% each month.<\/span><\/p>\n

Additionally, they will have to pay 1% interest on the remaining tax amount. Regardless, taxpayers having an unpaid self-assessed tax that is more than Rs. 1 lakh, will pay an extra 1% each month from August of 2020, until ITR is filed.<\/span><\/p>\n

Fine And Imprisonment <\/b><\/h3>\n

Suppose you miss out on filing ITR on time and have taxable income, you will be subject to a penalty ranging from 50% to 200% of the assessed tax amount. Furthermore, you may have to face legal consequences, such as imprisonment for up to 7 years or paying a hefty fine,\u00a0 if the amount of tax evaded exceeds Rs. 25000.\u00a0<\/span><\/p>\n

Losing Tax Benefits <\/b><\/h3>\n

Usually, businesses are allowed to claim <\/span>tax<\/b> deductions under Section 80C. This includes deductions on \u2013<\/span><\/p>\n