Interest will also have to be paid along with penalty
However, even if you have not filed your income tax return, you still have a chance. For this, you have to pay a penalty. Under Section 139 of the Income Tax Act, 1961, a penalty of Rs 5,000 has to be paid for not submitting income tax returns. This penalty is applicable when the income tax return is filed after deadline and before December 31. After this penalty is increased to Rs 10,000. Apart from this, interest is also payable on filing late ITR.
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After the date of filing ITR, when a taxpayer files his return, it is called bilated return. It comes under section 139 (4) of the Income Tax Act. Under this section, any taxpayer can file his previous return. Under this, a filtered return can be filed by 31 March 2021 under assessment year 2019-20.
What is the penalty arrangement on the bilated return?
Penalty is levied under section 234F on bilated returns. Under this section, after filing deadline and before December 31, filing ITR attracts a penalty of Rs 5,000. After this the amount increases to Rs 10,000. However, it is also to be noted that if the total income of the taxpayer does not exceed Rs. 5,00,000, then the fee for filing late ITR cannot exceed Rs. 1,000.
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Many disadvantages of not filing ITR on time
If there is a tax liability on a person and he does not file an income tax return, he may have to bear the brunt of this in the form of late fees, interest, deduction in certain deductions, etc. In simple words, if a person below 60 years of age has an annual income of Rs 2.5 lakh, a person aged 60-80 years is 3 lakh and a person above 80 years of age has an annual income of Rs 5 lakh. No need to fill ITR.