ITR filing: How much penalty you have to pay on late income tax return filing? Check what experts say
Belated ITR: The deadline for the late income tax filing is 31st. Failing to this may lead to a penalty up to Rs 10,000, says tax and investment expert.
Late ITR Filing: The deadline for belated Income Tax Return filing is 31st December 2019. The initial deadline for filing income tax returns was set as 31st August 2019 but was extended to 31st December 2019. According to the income tax rule applicable from 1st April 2018, the late fee levied on belated ITR filing, the introduction of standard deduction of Rs 40,000 in lieu of the medical reimbursement and the transport allowance, 10 per cent LTCG tax on equity investment gains have been imposed.
In case of late ITR filing, a penalty of Rs 5,000 is levied on the income tax payer if his or her income is more than Rs 5 lakh. In case the earning individual's income is less than Rs 5 lakh then the maximum late fee imposed on the belated income taxpayer is Rs 1,000. However, if an earning individual fails to file one's ITR by belated ITR filing date, then his or her penalty would get doubled to Rs 10,000 but for those whose annual earning is Rs 5 lakh or below, they will have to face the same belated itRfiling penalty of Rs 1,000.
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Speaking on the belated ITR filing penalty Kartik Jhaveri, Director — Wealth Management at Transcend Consultants said, "If an earning individual has an annual income more than Rs 5 lakh, then he or she can file the belated ITR by the due date of 31st December 2019 paying up to Rs 5,000 penalty. However, if the earning individual's income is less than Rs 5 lakh, then he or she will have to pay the belated ITR filing penalty of up to Rs 1,000 only." Jhaveri said that if someone fails to file late ITR by 31st December deadline, then his or her belated ITR filing penalty may get doubled up to Rs 10,000. But, for those, whose annual income is Rs 5 lakh or less will have to pay Rs 1,000 penalty only.
Jhaveri said that starting from 1st April i.e. beginning of the new financial year, if an earning individual files ITR post deadline of 31st July, then he or she will be levied up to Rs 10,000 penalty. This year, due to the relaxation given by the income tax department, if an earning individual files ITR after the 31st of August but before the 31st of December, he or she will have to pay the penalty up to Rs 5,000 only. However, if he or she fails to file belated ITR by December 31st, the penalty may shoot up by Rs 10,000.
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