17,000 new credit cards issued by ICICI linked to wrong users

Post demonetisation in November 2016, the income tax department had in 2017 said no questions will be asked about cash deposits of up to Rs 2.5 lakh

Most Indians have filed their income tax return on or before January 10 as it was the last date to file ITR. However, if you have missed filing your ITR on the due date, don’t worry! You still can do it but with penalty.

 Issuing an official order on January 11, the income tax department rejected requests for further extension of the due date for filing tax returns saying that generous extra time has already been given. The deadline was extended multiple times in the wake of the covid-19 outbreak. Generally, July 31 of the assessment year (AY) is the last date for filing the income tax return. This year it was extended three times.

As per updates from the income tax department, taxpayers will have to pay a late filing penalty in case you are filing a belated return. The penalty will be Rs 10,000 as the last date was extended beyond December 31.

In general, the last date for filing income tax return is  July 31 of the relevant assessment year. In case you miss the ITR due date, a flat penalty of Rs 5,000 is levied when you file belated return.

For small taxpayers with income of up to Rs 5 lakh, a penalty of Rs 1,000 is applicable in case of filing belated ITR.

Tax expert Gauri Chaddha tells, “If your gross total income is below basic exemption limit then there will be no penalty levied on you.”

Interest on due taxes is also supposed to be paid with the penalty. “If you are filing belated return the taxpayer would be liable to pay interest under section 234A at the rate of 1% per month (simple interest). Also, interest under section 234B and 234C will increase if advance tax has not been paid,” said Chaddha.

The penalty along with the due tax needs to be paid before you submit your belated ITR. Remember that you can’t escape paying penalty on belated return, irrespective of whether any tax is due or not.

You are also supposed to pay interest on due taxes each month until you file ITR besides paying a penalty. You will also not be allowed to carry forward certain losses to subsequent years for set-off.

You can earn interest on the refund claimed, if any tax refund is due and the ITR is filed within the stipulated time. As per Section 244A of the Income-tax Act, 1961, A refund is claimed when excess tax is paid on your income during the year.

You may lose some portion of interest that would be due on the refund amount as interest will be paid from the date of filing of return in case of belated returns. Interest on the refund due is paid from April 1, in case you file your return within the due date.