Last Date To File ITR – The entire nation is fighting successfully against the pandemic caused by the COVID-19 Novel Coronavirus. In a bid to break the chain of the virus and stop it from spreading Government of India has called for a complete lockdown across India for a period of 21 days. This has caused significant mayhem across different businesses and the economy has been affected adversely. Considering this fact the Finance Ministry of India last week announced a statement of relief for all valuable taxpayers of India. The Finance Ministry has given a 3-month window for the taxpayers and they can now pay their Income tax and file ITR on or before 30th June 2020 and this is due to lockdown implemented on the entire nation. However, no changes have been made in the Financial Year End as it will remain the same i.e. 31st March 2020.
Last Date To File ITR – So, taxpayers can now file their ITR for fiscal 2019-20 on or before 30th June but the new financial year will start from 1st of April 2020 as usual. But if you miss the extended deadline and fail to file the Income Tax File Return before the deadline, then you will be penalized for the belated or late return filing. However, you don’t have to worry if you miss the deadline as you can still file the return after due date till the end of the assessment year and this is referred a belated return or late filing of return. According to the new rules, filing a belated return can cost you and anyone filing belated return need to pay a penalty for the same.
What is the Belated Income Tax File Return?
If any individual fails to file their income tax return on or before the deadline, then under section 139(4) of Income Tax Act they can file the belated return but with a certain penalty. However, the penalty is not for all because a person with income which is below the taxable limit is not liable for paying the penalty even if they file their return after the deadline. This is the amendment done in the New Income Tax Rule. But others that earning more than the taxable limit need to pay the penalty if they miss the deadline for filing the return.
Is it Possible to Revise Belated Tax Returns?
Of course, it is possible to revise the belated tax returns. Under Section 139(4) of the Income-tax Act, anyone applicable for belated returns can ask for a revise. Earlier i.e. before FY 2016-17, it was not possible to revise the belated returns.
Immediate Effects of Missing ITR Filing Deadline
You Need to Pay a Penalty
Before 2017, no taxpayers were charged or penalized for the late filing of their income tax returns. But according to new tax rules and under section 234F, taxpayers in India would be penalized if they miss the deadline for filing the income tax return.
Taxpayers with an annual income of less than Rs. 5 Lac would be penalized and they need to pay Rs. 1000 if they file their return after extended deadline i.e. June 30. Taxpayers with an annual income of more than Rs. 5 Lac would be penalized and they have to pay a penalty of Rs. 5000 upon missing the extended deadline for filing the ITR Return.
Extra Interest Rates
Apart from the penalty, the taxpayers also need to pay interest when filing their return after the deadline. Income Tax Department would charge a simple interest of 1% per month or part of a month on the amount that is taxable and not paid. This interest rate will be charged on how late you are in filing the return after the deadline has over.
What are the Things you May Lose Out from Missing the ITR Deadline?
All Interest on Tax Refund Get Lost and Refund is Delayed
Taxpayers who miss the deadline for filing the tax returns and file for belated returns may lose interest in the tax refund amount and they can’t even carry forward the interest. This, as a result, would lead to a delay in the refund amount.
No Carry Forward of Losses
No taxpayers can carry forward the losses incurred under the heads “Profits and gains of business” if they miss the deadline.
Prosecution
Last Date To File ITR – In the worst cases, the Income Tax Department would create a notice against the taxpayers and send it to remind them about the filing of the returns. This may further be converted into prosecution which may put the taxpayer behind the bar with a jail term of 3 months to 24 months depending upon the amount of tax due.
But, no prosecution is sent to taxpayers if they file belated returns by the end of the assessment year. Today, tax can be paid online via the website of Top Banks in India and if you hold an account on those listed banks you can file your ITR easily online directly from their website or from the website of Income Tax Department.
