Penalty on Late Filing of Income Tax Return – Section 234F: According to section 234F of the Income Tax Act, if a person is obliged by law to income tax returns filing (ITR forms) as per the regulations of the Income Tax Law but ultimately fails to do so within the permitted time limit, they must incur late penalties while submitting his ITR form.
The overall amount of fees will be calculated by filing the return and the taxable income.
- What is the overall sum of late fees accumulated?
- Interest Payment
- Losses cannot be carried forward.
- Refunds are being issued slowly.
What is the Overall Sum of Late Fees Accumulated?
The assessment for fines and penalties will commence on July 31 of the relevant assessment year. As a consequence, the worse you postpone, the more you must pay.
- If the total income surpasses Rs. 5 lakh and the return is submitted beyond January 10, 2021, for the budgetary year 2020-21, the financial penalty is Rs. 10,000/-.
- If the total revenue is up to Rs. 5 lakh and the return is completed after January 10 2021, for the monetary year 2020-21, the fee is Rs. 1,000/-.
Interest Payment
If you neglect to file your income tax returns on or before the specified deadline, you will be obliged to pay a rate of interest of 1% each monthly, or portion of a month, on the level of tax that remains outstanding according to Section 234A.
It is vital to consider that an ITR cannot be submitted if the obligations have not been completed.
Losses Cannot be Carried Forward
If you experienced severe losses or capital gains throughout the year, you should make entirely sure you submit the return well before the deadline date.
If you’re not doing so, you will be extremely disappointed in your capacity to move forward the same liabilities to subsequent seasons regarding revenue.
Refunds are Being Issued Slowly
If you are entitled to receive a refund from the government for extra taxes paid, you should therefore submit your returns before the time limit to receive the refund as quickly as practical.