You have one month and a few more days to submit your ITR for the previous year 2019-20. It is important to file your taxes on or before the due date, as the delay in filing will have its consequences. Along with the penalties, filing late will also take away many tax benefits from the taxpayer. Taxpayers should avoid the practice of filing late. The latest ITR filing date is November 30. The consequences of a delay in the filing of the income declaration by a taxpayer are detailed below:
Penalties in case of delay in the presentation of ITR
Collection of interest according to section 234A: The taxpayer is obliged to pay simple interest at 1% per month or part of a month for the delay in filing the income statement.
Late Filing Fees: Section 234F of the Income Tax Act charges late filing fees for returns filed from fiscal year 2018-19 onwards. If the return is filed after the due date but before December 31 of the appraisal year, a late filing fee of ₹5,000 are charged. If the return is filed after December 31, a late filing fee of ₹10,000 is paid. However, the amount of late filing fees to be paid cannot exceed ₹1,000, if total income does not exceed ₹5 lakh.
Lower tax benefits
AFor a long time with the penalty, a taxpayer will also have to set aside certain exemptions and deductions for that year. The exemptions and deductions that will not be available if the ITR is filed late are as follows:
> Exemptions under section 10A, section 10B for new establishments are not available
> There is no deduction according to 80-IA, 80-IAB, 80-IB, 80-IC, 80-ID and 80-IE, with respect to the benefits and profits of industrial companies or companies dedicated to the development of infrastructure
> The deduction under 80IAC, 80IBA, 80JJA, 80JJAA, 80LA, 80P, 80PA, 80QQB and 80RRB are not available
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