Wednesday, September 23, 2020
google adsense check
Home MONEY What you need to have to keep in thoughts

What you need to have to keep in thoughts

The 30 September deadline for filing belated or revised cash flow tax returns (ITR) for the assessment year 2019-20 (monetary 12 months 2018-19) is fast approaching. The final day for filing tax returns for AY 2019-20 was extended a few times in the wake of the covid-19 pandemic. It was initially revised until 30 June and afterwards until 31 July.

As a result, it will be far better for you to file returns and not to wait for the past moment in the hope of having an extension. In situation you want to make a change or correction in your original return filed for FY19, you can also file a revised return.
Also, as there is no relief on penalty on delay or interest on tax because of in case you delay the filing of your belated return, it would make feeling to file it as before long as feasible. Let us realize what is a belated return and how interest and penalty are billed on the similar.
No aid from penalty and interest on tax because of
Belated ITR is the return filed immediately after the due date, which is commonly 31 July of the assessment year (AY). For FY19, the due date of filing ITR was 31 August and the assessment yr was till March 2020. While the date of filing belated ITR has been extended, there is no reduction from the late filing penalties and interest on unpaid tax dues.
In circumstance the taxpayer misses the ITR due date (which was 31 August for FY19), a flat penalty of ₹5,000 will be levied when you file belated returns until 31 December, and ₹10,000 if you file after 31 December until 31 March.
For little taxpayers with income up to ₹5 lakh, a penalty of ₹1,000 is applicable in situation of filing belated ITR till 31 March. Even if you file the belated return for FY19 by September, you will have to pay a late filing penalty of ₹10,000.
In scenario you had any tax dues though filing belated ITR, you will have to pay interest on the superb amount of money at 1% for every thirty day period of delay beginning 1 September of FY19. Also, if you are liable to fork out advance tax, you will have to pay interest on the delay or default on advance tax payment underneath the respective sections of the Earnings-tax Act.
“If the taxpayer has not compensated advance tax for FY19 or discharged considerably less than 90% of liability by progress tax, supplemental interest at the rate of 1% for every month or part of the thirty day period will be levied till the day of the whole tax liability has been paid. Tax liability is calculated on the time of filing the return,” mentioned Kapil Rana, founder and chairman, HostBooks Ltd, an accountancy firm.
Delay in refunds
In circumstance you have a refund due, they will be delayed as the processing of refunds will only start immediately after you have filed the tax return. The tax section pays interest on refunds from the day of filing of return in scenario of late returns, so in situation of delay, you will lose on the interest on refund if there is any.
If you will not file returns
In case you never file belated ITR inside the due dates, the tax department can ship a notice.
“If you have taxable cash flow and do not file profits tax return, you could close up spending penalty for concealment of income. In the extreme situation, you may perhaps acquire notice of prosecution,” reported Vivek Jalan, partner at Tax Connect Advisory Providers LLP.
If the deadline is not extended, it may well be your previous possibility to file the tax return for FY19 as the tax the office does not let the filing of tax return right after the due date. There is a prolonged approach to file a return right after the due date and is typically authorized only in special situations.

Subscribe to Mint Newsletters

* Enter a valid e mail
* Thank you for subscribing to our newsletter.



Please enter your comment!
Please enter your name here

Most Popular

Palantir suggests it expects 42% revenue development this calendar year to $1.06 billion

CEO of Palantir Alex Karp leaves the Elysee Palace in Paris, on May well 23, 2018 right after the "Tech for Superior" summit.Ludovic Marin...

Pelosi, Mnuchin strike paying bill offer

Speaker of the Household Nancy Pelosi (D-CA) speaks in the course of her weekly news meeting at the U.S. Capitol on August 6, 2020...

Recent Comments