The Central Board of Direct Taxes (CBDT), on Wednesday, extended the due date for filing Income Tax Returns (ITR), for the financial year 2019-20, by ten days. The new deadline for filing income tax returns is now January 10, 2021.
This is the third time this year that the Income tax return filing date has been extended. Earlier, the data was extended from the usual July 31 to November 31 and then to December 31 owing to the coronavirus pandemic.
If you miss filing Income Tax Return (ITR) on the due date, i.e. January 10, 2021, for the financial year 2019-20, you will have to pay a double penalty, as per the order by the government.
The fine this year for missing ITR filling has been increased from Rs 5,000 from last year to Rs 10,000. The practice of charging late filing fees under section 234F was introduced in the Budget of 2017. The same has become effective for the financial year 2017-18.
The penalty on late filing of ITR is applicable to individuals earning Rs 2,50,000 and more. For the unaware, people whose yearly net income is between Rs 2,50,000 to 5,00,000 don’t have to pay tax to the government but are required to file ITR. And failing to do so will invite a penalty of Rs 1,000.
For individuals whose net total income, i.e. income after claiming eligible deductions and tax exemptions, exceeds Rs 500,000, have to pay Rs 10,000 in penalties in case they miss filing ITR on January 10.
Kush Vatsaraj, Associate, TP Ostwal & Associates LLP said: “A delay in filing your ITR comes with a host of consequences. One of these is a penalty of Rs 5,000 for ITRs filed after the due date. However, this penalty doubles to Rs 10,000 if the ITR is filed after December 31 of the corresponding Assessment Year. Effectively, for FY 2019-20, since the original due date for regular ITRs has been extended to December 31, 2020, all ITRs filed late will come with a penalty of Rs 10,000.”