Income tax return: why you shouldn’t wait until the extended deadline date to file the ITR

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Despite the extension of the due date, taxpayers must pay interest for late payment of tax.

As the last valuation year (YY 2020-21), hit by Covid, during this valuation year (YY 2021-22), the due date for filing the tax return (ITR) has also been extended – first until September 30, 2021 – and then until December 31, 2021, due to technical issues in the new income tax portal.

“In order to provide relief to taxpayers, in the midst of the Covid-19 pandemic, and due to concerns and technical issues on the Income Tax website, regarding filing and verifying returns, among others, the central government has extended the income tax filing deadline. returns for fiscal year 2020-21, ”said Kapil Rana, Founder and President of HostBooks Ltd.

“However, even if the taxpayers have obtained relief to file an ITR, but the taxpayer must still file a return as soon as possible in order to avoid interest under sections 234A and 234B, because there is no relief from the penalty for late filing of returns under Sections – 234A and 234B of the Income Tax Act of 1961. The taxpayer must pay interest for delay in filing the return and paying the tax. ‘tax. The delay in filing the ITR generates interest under section 234A. If the taxpayer has not paid withholding tax or has paid less than 90 percent of the tax payable, he will have to pay interest under section 234B at the rate of 1 percent per month or part of month of April on the date of payment of the tax, ”he added.

Interest on tax payable

Speaking of interest on tax payable, Rana said, “Under section 208, a person is required to pay withholding tax if his tax payable for the year is Rs 10,000 or more. So even if you are late in filing the ITR, it is best that you pay withholding tax early. With regard to the advance payment of tax, a natural person residing in India who is 60 years of age or over and has income other than income from a business or profession, is not required to pay tax in advance, therefore Section 234B interest will not affect such a person. “

“In cases where the amount of total income tax after deduction of the amount of withholding tax, TDS / TCS, any tax relief allowed u / s 89, 90, 90A and 91 and the credit of alternative minimum tax, exceeds Rs 1 lakh, interest under article 234A will be applicable because when it comes to paying tax, the taxpayer has no problem and the website works transparently ”, a- he added.

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Late charge

In addition to interest on tax payable, failure to meet the due date results in late fees as well as Article 234F of the Income Tax Act.

“A late fee of 5,000 rupees will be due if the return is submitted after the due date. If the total income does not exceed Rs 5 lakh, the fee will be Rs 1,000, ”Rana said.

However, the late fee of Rs 5,000 is applicable for failure to meet a due date until December 31st of a valuation year and in other cases the fee becomes Rs 10,000. .

So, if he missed the extended deadline of December 31, 2021, a taxpayer would end up paying double the fine or Rs 10,000.

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