File your Income Tax Return for AY 2020-21 on time or face a fine of Rs 10,000

Income Tax Return AY 2020-21: Giving a big relief to taxpayers, the Income-Tax (I-T) Department extended the last date for filing of individual Income Tax returns (ITRs) for FY 2019-20 or Assessment Year (AY) 2020-21 by another month till December 31. This is the second time the Central Board of Direct Taxes (CBDT) has extended the last date for filing of ITR for AY 2020-21.

While this gives some extra time to file income tax returns, the taxpayers should know that they still need to complete the process before the mentioned date. In case you fail to do so, a hefty penalty can be imposed. 

What is the penalty for late filing of income tax return?

Penalties:

·         ITR for a financial year should be filed within the prescribed due date for each year failing which interest shall be levied. From FY 2017-18, late filing fee under Section 234A, the taxpayer will be levied an interest rate of 1% every month on delayed ITR.  

·         A late filing penalty of Rs 10,000 is payable if the return is filed later than December 31.

·        A late filing fee of Rs 5,000 is charged, if the ITR return is filed after the due date but before December 31st of the assessment year.

·     However, If the annual income of the assesse is not more than Rs 5 lakh then penalty for missing due date for filing ITR is Rs 1,000.

Apart from the penalty, the taxpayers won’t be able to make use of deductions and exemptions for that year.

Deduction under 80-IA, 80-IAB, 80-IB, 80-IC , 80-ID and 80-IE, in respect of profits and gains from industrial undertakings or enterprises engaged in infrastructure development, are not available

Deduction under 80IAC, 80IBA, 80JJA, 80JJAA, 80LA, 80P, 80PA, 80QQB and 80RRB are not available

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