Income Tax Return: Why should you not wait for the extended due date to file ITR?

Amid the COVID-19 pandemic, and due to concerns and technical glitches in the new income tax portal, the due date for filing ITR has been extended to provide relief to taxpayers.

Like the previous assessment year (AY 2020-21), the due date for filing income tax return (ITR) in this assessment year (AY 2021-22) has also been extended - first till September 30, 2021 - and then to December 31 2021, due to technical glitches in the new income tax portal.

“In order to provide relief to the taxpayers, amid the COVID-19 pandemic, and due to concerns and technical glitches in the Income Tax website, with respect to filing and verification of returns, the Central Government has extended the deadline for filing Income Tax. Returns for the financial year 2020-21

“However, even though the taxpayers are relieved in filing ITR, the taxpayer should file the return at the earliest to avoid interest u/s 234A and 234B as per section 234A and section 234B of the Income Tax Act 1961. For delay in filing return and payment of tax, the taxpayer has to pay interest. Delay in filing ITR attracts interest under section 234A. If the taxpayer has not paid advance tax or has paid less than 90 per cent of the tax liability, he will have to pay interest under section 234B at 1 per cent per month or part of the month from April to April. The date of payment of tax,” he said.

Interest on tax payable

Talking on interest on tax payable, Rana said, “Under section 208, a person is liable to pay advance tax if his tax liability for the year is Rs 10,000 or more. So, even if you are getting late in filing ITR, it is better to pay the advance tax at the earliest. In so far as payment of advance tax is concerned, a person who is resident in India who is of the age of 60 years or more and having income other than income from business and profession, is not required to pay advance tax, Hence interest under section 234B will not be affected. such a person."

"In cases where the amount of tax on total income after deducting the amount of advance tax, TDS/TCS, any relief of tax allowed under sections 89, 90, 90A and 91 and alternate minimum tax credit exceeds Rs.1 lakh . , interest under section 234A will be applicable because as far as payment of tax is concerned, there is no problem for the taxpayer and the website is working uninterruptedly,” he said.

Late fees

Apart from interest on tax due, missing due date also attracts late fee under section 234F of the Income Tax Act.

• “If the return is submitted after the due date, a late fee of Rs 5,000 will be payable. If the total income does not exceed Rs 5 lakh, the fee will be Rs 1,000,” 

• However, missing the due date by December 31 of the assessment year attracts a late fee of Rs 5,000 and in other cases the fee goes up to Rs 10,000.

• Therefore, a taxpayer will have to pay double the penalty or Rs 10,000 for missing the extended due date of December 31, 2021.

In Hindi Article:- https://akbnews01.blogspot.com/2021/10/blog-post_732.html