203559 SIP myths you must know!
If you fail to file your tax return by the stroke of midnight, you might have to face IT Department enquiry and later pay penalty and interest on the tax payable
In a few hours, the deadline to file tax on your income for financial year 2019-20 (Assessment Year 2020-2021) will expire. At the stroke of midnight the window to file I-T return will close and you may have to face enquiries from the Income Tax department.
The due date for filing I-T returns was January 10, 2021. If you filed your tax returns by that date, no penalty/interest would have been applicable.
If you file your tax returns between January 11 and March 31 (today), you would need to pay penalty and fine.
If you don’t file your returns by tonight you can soon expect a notice from the I-T department that will ask you to show reason as to why you could not file I-T return within the last date. If the department is satisfied with your reply, you may escape without paying penalty and interest. Else you would need to pay both.
The amount of interest that one would pay is governed by section 234A of the Income Tax Act. It stipulates a monthly rate of interest of 1% on the tax liability. If the period exceeds a month even by a day, 2% interest would apply. However, a simple rate of interest of applicable.
Also remember there is no relaxation for senior citizens.
DO NOT IGNORE THIS!
If you haven’t filed your Income Tax Return (ITR) yet, this is your last chance to do so.
Last date to file your ITR for AY 2020-2021 is March 31st, 2021#SmartBanoFileKaro pic.twitter.com/xebzfFG8vi— Income Tax India (@IncomeTaxIndia) March 27, 2021
To file I-T return online, you need to get the following information:
1. PAN
2. Aadhaar card/number
3. Form 16 (If you are a salaried employee)
4. Form 26AS issued by bank with which you have accounts (If you are not a salaried employee)
5. Salary slips
6. Figures for tax savings investments made between April 1, 2019 and March 31, 2020. These could be investments in NSC, PPF, ELSS, ULIP, health insurance for self and dependent, tuition fee paid to school/college for children.
7. Bank bank/post office passbooks updated till March 31, 2020.
8. TDS certificates that banks might have issued on interest income on FDs
9. Home loan statements.
10. Interest paid for education loans for children
If you are running to an I-T lawyer today, remember to carry these documents/information along.