What Is The Penalty For Late Filing Of ITR?

The Income Tax (I-T) Department prolonged the deadline for the filing of individual Income Tax Returns (ITRs) for FY 2019-20 or Assessment Year (AY) 2020-21 by another month until December 31 in addition to another relaxation for taxpayers. Central Board of Direct Taxes (CBDT) has extended the second time the last date for filing of ITR for AY 2020-21. Taxpayers must be aware of the lack of the last ITR filing deadline, which not only penalises the assessee but also eliminates the tax benefits of the year. So, on or before the due date, it is necessary to file ITR. 

Penalty for late filing of Income Tax Return

The late filing fee is applicable from 2017-18 if the ITR is filed after the due date of 31 December 2020 for the existing 2019-20 appraisal year. Under Section 234F of the Income Tax Act, the maximum penalty for filing an ITR after the due date is Rs 10,000. A late filing fee of Rs 5,000 will be applicable from FY 2017-18 for the filing of ITR after the deadline but before December 31 of the section’s assessment year. A late fee of Rs 10,000 is charged after 31 December. However, in a concession to small taxpayers, if the assessee’s annual revenue is not greater than Rs 5 lakh, then the penalty for skipping ITR filing due date is Rs 1,000. For each year in which interest is imposed, the ITR for the fiscal year should be filed within the specified due date. The taxpayer will be charged an interest rate of 1 per cent per month on overdue ITR from FY 2017-18, the late filing fee under Section 234A. The taxpayer will also have to let go of deductions and exemptions for that year, aside from penalties.

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