The 30 September deadline for filing belated or revised money tax returns (ITR) for assessment calendar year 2019-20 (monetary calendar year 2018-19) is rapid approaching.
Belated ITR is the a person filed just after the due date, which is typically 31 July of any assessment year. For FY19, the due date of filing ITR was 31 August and the assessment year was till March 2020. Revised ITR is filed when you want to make a change or correction in your unique ITR filed.
The previous date for filing belated or revised ITR for AY20 has previously been extended 3 periods this calendar year in the wake of the covid-19-induced lockdown. It was initially postponed to 30 June 2020 and then to 31 July 2020. So, it is much better for taxpayers to file their belated or revised ITR as shortly as feasible and not hold out till the previous moment in the hope of getting an additional extension.
Here are some other factors why you should file your belated return at the earliest and not delay it even further. We also explain to you what occurs if you never file your returns at all.
While the date of filing belated ITR has been prolonged, 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 in between 31 December and 31 March.
For smaller taxpayers with profits of up to ₹5 lakh, a penalty of ₹1,000 is applicable in circumstance of filing belated ITR until 31 March. Even if you file the belated return for FY19 by 30 September, you will have to pay out a late filing penalty of ₹10,000.
In scenario you had any tax dues though filing belated ITR, you will have to shell out interest on the excellent quantity at 1% for just about every month of delay commencing 1 September 2019.
Also, if you are liable to fork out any progress tax, you will have to shell out interest on the delay or default on advance tax payment under the respective sections of the Earnings-tax Act, 1961.
“If the taxpayer has not compensated progress tax for FY19 or discharged fewer than 90% of their liability by progress tax, an more interest at the rate of 1% for each thirty day period or element of the thirty day period will be levied until the date the entire tax liability has been compensated. Tax liability is calculated on the time of filing ITR,” explained Kapil Rana, founder and chairman, HostBooks Ltd, an accountancy agency.
Delay in refunds
In scenario you have a tax refund due, the payment will be delayed as the tax section will start off processing the refunds only following you file the belated return.
The tax department pays interest on refunds from the day of filing of return in case of late returns. So in scenario you delay filing the belated return, you will reduce on the interest payment on your tax refund, if any.
If you really do not file ITR
In situation you do not file belated ITR within the because of dates, the income tax office can send you a observe.
“If you have taxable cash flow and do not file ITR, you may perhaps stop up shelling out penalty for concealment of revenue. In the extraordinary situation, you may perhaps obtain a observe for prosecution,” claimed Vivek Jalan, companion at Tax Link Advisory Solutions LLP.
If the deadline is not extended, it may be your past possibility to file ITR for FY19 as the tax office doesn’t permit filing of return right after the due date.
Also, try to remember that there is a prolonged process to file belated ITR soon after the due date and is authorized only in unique circumstances.
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