New Delhi: The last date for Income Tax return filing is July 31 2024. The Income Tax Act, 1961, under Section 234F, imposes penalties on taxpayers filing their Income Tax Returns (ITR) after the deadline. An ITR filed after the due date is termed as belated. A penalty of Rs 5,000 is levied for filing an ITR late, but this amount is reduced to Rs 1,000 for taxpayers with a taxable income not exceeding Rs 5 lakh.
It’s important to note that this penalty applies even if no tax is due at the time of filing the ITR. To submit and verify a belated ITR, the details of the late filing fee payment must be included in the ITR form.
Penalty when taxable income exceeds basic exemption limit
Under Income Tax laws, certain categories of taxpayers are required to pay this late filing fee or penalty if they miss the ITR filing deadline and if the taxable income exceeds the basic exemption limit. If a taxpayer’s taxable income exceeds the basic exemption limit applicable under their chosen tax regime, a penalty is levied for filing a belated ITR.
ITR for holding foreign assets
Taxpayers may need to file ITR even if their taxable income does not exceed the basic exemption limit, but they satisfy specific conditions listed in the 7th proviso of Section 139(1) of the Income Tax Act. This includes criteria such as significant spending on foreign travel or large electricity bill payments. Residents with investments in foreign assets or earning income from abroad must file ITR, irrespective of their taxable income being below the basic exemption limit.
Taxpayers whose taxable income does not exceed the basic exemption limit, but who are required to file ITR for other reasons such as claiming tax refunds, do not incur penalties for late filing.
Penalty reduced for Filing ITR
Until FY 2019-20 (AY 2020-21), penalties for late ITR filing could go up to Rs 10,000, with a lower penalty of Rs 5,000 applicable if filed by December 31 and a higher penalty of Rs 10,000 if filed between January 1 and March 31. From FY 2020-21 (AY 2021-22) onwards, the maximum penalty was reduced to Rs 5,000 due to a shortened filing window ending on December 31.
ITR 2024: A penalty of Rs 5,000 is levied for filing an ITR late, but this amount is reduced to Rs 1,000 for taxpayers with a taxable income not exceeding Rs 5 lakh. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
