filing your ITR post the deadline, can make you liable to pay penalty of Rs 10,000 rupees
@ Ajay Kumar Gupta
As per the changed rules notified under section 234F of the Income Tax Act which came into effect from 1 April 2017, filing your ITR post the deadline, can make you liable to pay a maximum penalty of Rs 10,000.
Payment of Interest
If you do not file income tax returns on or before the due date, you would be required to pay interest at the rate of 1% for every month, or part of a month, on the amount of tax remaining unpaid as per section 234A.
It’s important to note that one’s ITR cannot be filed if one hasn’t paid the taxes. The calculation of penalty will start from the date immediately after the due date i.e. 31 July (For current year i.e FY 2018-19, it was 31 August 2019). So, the longer you wait the more you will have to pay.
Carry Forward of Losses is Not Permitted
If you have incurred any losses during the year say a loss under the head Capital Gains or any loss in your business, make sure you file your return within the due date. Not doing so will deprive you of carrying forward these losses to the next years for set off against income in future years.
Delay in Receiving Refunds
In case you’re entitled to receiving a refund from the government for excess taxes you have paid, you must file your return before the due date to receive the refund at the earliest.
Section 194N on TDS on Cash Withdrawals from Bank, etc., accounts from 01-07-2020
section 194N says any person who withdraw cash from one or more bank accounts including a co-operative bank and post-office would be liable for (TDS) at the rate of 2% on cash withdrawal from FY 2020-21. (will take effect from the 1st day of July, 2020.)
it is provided that the threshold limit for the same is Rs. 1 crore in a year for the person filling his income tax returns on time but in case of a person who has not filed his income tax return for last three assessment years and the time limit to file the return of income u/s 139(1) is expired, then the threshold limit of Rs. 1 crore is reduced to Rs. 20 Lakh and rate of TDS shall be-
(a) 2 per cent from Rs. 20 Lakh to Rs. 1 crore, and
(b) 5 per cent above Rs. 1 crore.