The Central Board of Direct Taxes (CBDT) has prolonged the deadline to file the revenue tax return (ITR) for the monetary yr 2019-20 to December 31, past the standard date of July 31, owing to the continuing coronavirus pandemic.
In keeping with the principles, people under 60 years of age incomes Rs 250,000 or extra yearly are mandatorily required to file ITRs, whereas, the restrict for senior residents or these between 60 years and 80 years of age is Rs 500,000.
This yr the federal government has raised the penalty quantity for lacking the deadline, by imposing a high quality as much as Rs.10,000 versus the Rs.5,000 imposed final yr. The practise of charging late submitting charges beneath part 234F was launched within the Funds of 2017 and have become efficient for monetary yr 2017-18 or evaluation yr 2018-19 onward.
The hefty late submitting charge is just relevant if the taxpayer’s internet whole revenue, i.e. revenue after claiming eligible deductions and tax exemptions, exceeds Rs 500,000 within the present monetary yr. People with taxable revenue as much as Rs 500,000 must pay a high quality of Rs 1,000 in the event that they file their ITR after December 31. For people whose taxable revenue is greater than Rs 500,000, the identical penalty will go as much as Rs 10,000.
There are nonetheless, exemptions to the above rule as a result of amendments made within the Revenue-tax Act, 1961, by way of Funds 2019 which stipulates the next classes of individuals is not going to be exempted from the penalty
1. People who’ve deposited an quantity or aggregates of the quantity exceeding Rs.1 crore in a number of banking accounts
2. People who’ve incurred expenditures exceeding Rs 2 lakh resulting from international journey.
three. People who incur expenditure or mixture expenditures of Rs 1 lakh and extra resulting from electrical energy consumption.
Submitting ITR dues additionally ensures that the curiosity payable on the tax refund is calculated from April 1 of the related evaluation yr. In case of belated filings the person loses out on some quantity of the curiosity.