Reduced Penalty for late filing of Income Tax

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For the financial year 2020 to 2021, the time limit to file ITR (income tax return) is September 30th, 2021 (it expanded from the typical time limit of July 31st, 2021 owing to the Coronavirus). Till the previous year, if a levy payer missed the ITR filing time limit, the greatest Penalty they would have had to disburse was Rs ten thousand.

Nonetheless, with effect from FY 2020 to 2021, the amount of Penalty has been lessened by half; that is, an individual filing delayed ITR would have to disburse a penalty of up to Rs five thousand. Furthermore, if your wages are under the chargeable limit, you would not still have to spend the penalty sum if you file your ITR later than the time limit subject to assured exceptions. This article demonstrates Reduced Penalty for late filing of income tax in detail.

The Reduced Penalty for late filing of Income Tax for FY 2020-21

In financial plan 2021, administration lessened the maximum period for a person (whose financial records are not necessary to be audit) for ITR file by three months. Due to the lessening in the Income Tax Return filing deadline, a significant alteration was created in Section 234F of the Income-levy act. Under 1961 the punitive sum for file delayed ITR was lessened to the greatest of Rs 5,000 to Rs 10,000 previously.

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Previously, a person was permitted until the end of the financial year, that is, March 31st, to file belated ITR by paying the highest Penalty of up to Rs ten thousand.

According to this, for FY2020 to 2021, the time limit for filing belated ITR was December 31st, 2021. However, it has been expanded to January 31st, 2022, owing to the pandemic. As declared above, a person filing delayed ITR by the time limit of January 31st, 2022, would have to disburse the greatest Penalty of Rs five thousand.

If the delayed ITR was filed later than the expiration of the time limit and on or previous to December 31st, then the person was required to pay a late filing charge of Rs five thousand. If the Income-tax return is filed between January 1st and March 31st, then a belatedly filing amount of Rs ten thousand is taxed.

On the other hand, there is no modification inside the penal amount taxed on tiny taxpayers who miss the Income-tax return submitting time limit.

Govt extends deadline for filing of various forms under Income Tax Act

If you want any other guidance relating to the Income Tax Return Filing, please feel free to talk to our business advisors at 8881-069-069.

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