Deadline to file ITR
- The deadline to file ITR for the financial year 2019-20 has been extended to January 10, 2021, from the earlier deadline of December 31, 2020.
- In case if an individual was required to file the return and failed to do so, then not to worry and they have an option to file IT.
- CBDT issues press release along with notification for extension of due dates for filing ITR under the Income-tax Act, 1961 for AY 2020-21 from 31st March 2021 to 31st May 2021.
Benefits of Filing ITR on or before the deadline
- Banks can ask for a copy of tax returns for Loan Approval (vehicle loan, House Loan etc.)
- To Claim Income Tax Refund, you will have to file an ITR
- You will be able to carry forward losses to subsequent years, which can be used to set off against income of subsequent years.
- In order to Avoid Penalty.
- Collect required documents: such as Form 16, salary slips, and interest certificates
- Download and check Form 26AS.
- Cross-check your TDS certificates with Form
- Rectify the errors in Form 26AS, if
- Compute total income for the financial
- Compute your tax liability.
- Calculate final tax payable, if
- File ITR (Original / Belated) (Refer to next Slides).
- Department will process a return after
Steps to file an income tax return
- Go to e-filing portal at https://incometaxindiaefilling.gov.in.
- If already registered on the portal, click on 'Login Here' to login to e-filing portal.
- If not already registered on e-filing Click on 'Register Yourself'
- Select the ITR filing option, select the assessment year, form number and filing type namely original or revised return
- Select 'prepare and submit online’
- Select the pre-validated bank account, where you want to receive the Income Tax refund if you are eligible for any
Disadvantages of Filing Belated ITR
- Taxpayer liable to pay TAX along Simple Interest (with 1% per month as per Sec 234A)
- Late fee under Section 234F (Refer next slides)
The fee penalty will be as follows
- Not able to carry forward losses to subsequent years.
- As per the changed rules notified under section 234F of the Income Tax Act 1961, filing your ITR after the deadline, can make you liable to pay a maximum penalty of Rs 10,000.
- • Example: If you file your ITR for FY 2019-20 on or before 10th January 2021 (15th February for audit and transfer pricing cases), no penalty will be levied.
- For returns filed after 10th January, the penalty limit will be increased to Rs. 10,000.
- Relief to small taxpayers, the IT department has stated that if your total income is not more than Rs 5 lakh, the maximum penalty levied for delay will only be 1,000.
Disclaimer: The purpose of this is to share knowledge and it is for education purpose only. This does NOT constitute NOR does this form part of neither it is to be construed as, A LEGAL OPINION. The analysis is solely based on the reading abilities of the Author. They may be correct/incorrect as per you. No representation or warranty, express or implied, is made or given in respect of any information provided. UNDER NO circumstances should any recipient rely on this communication as a basis for any legal decision. The views expressed are of personal to the author. They do not reflect the views of any organization he may be directly/indirectly associated with. Neither author nor any of its affiliates accepts any legal liability, or responsibility, for, or provides any assurance or guarantee of accuracy, authenticity, completeness, correctness, dependability, reliability, suitability or timeliness of, any part of this article. The contents of this article are based only on the understanding of the Law, Rules, Notifications, etc. of the author and THEY ARE NOT BASIS FOR ANY LEGAL OPINION.
Tags :income taxitr