The last date for filing the Income Tax Return (ITR) is now very close. Most taxpayers have to submit their returns by September 15, and filing returns after this date can attract a heavy penalty. Due to technical problems and delays in ITR forms, the government has extended the deadline from July 31 to September 15 this time.
However, now some tax bodies have sought further extension, but there has been no official announcement at the moment. In such a situation, it is very important to know how much penalty can be imposed for filing ITR after September 15.
How much penalty will be imposed after September 15?
If you file ITR after September 15, it will be considered a ‘belated return’ and you will have to pay a penalty and interest under section 234F of the Income Tax Act. If your taxable income is up to ₹ 5 lakh, you may have to pay a penalty of up to ₹ 1,000. If your taxable income is more than ₹5 lakh, the penalty can be up to ₹5,000.
This penalty will apply even if you do not owe any tax at the time of filing. In addition, as per the current rules, any outstanding tax will also attract interest at the rate of 1% per month. This interest is levied on the net amount that is due, even if you have paid the outstanding tax at the time of filing the return.
Who has to file ITR by September 15
All individuals and entities whose accounts are not required to be audited must file their ITR by September 15. This includes:
- All salaried individuals and pensioners whose total income exceeds the basic exemption limit.
- Professionals whose income is up to ₹50 lakh and are not subject to audit requirements.
- Taxpayers who have fulfilled certain conditions, such as spending ₹2 lakh or more on foreign travel, paying more than ₹1 lakh on electricity bills, or holding ₹1 crore or more in current accounts.
- Individuals whose TDS or TCS exceeds ₹25,000 (₹50,000 for senior citizens).
- Resident taxpayers who own foreign assets or are beneficiaries of foreign assets.
So, to avoid penalties and interest, it is very important to file your ITR on time.
