The Central Board of Direct Taxes (CBDT) had earlier provided for the last day to file belated or revised returns for the assessment year 2019-20, and for the previous year (2018-19) which September 30, 2020. It has also been decided that the deadline to file taxes ends on September 30, 2020. On the other hand, for FY 2020, it is allowed until November 30, 2020.

The 30 September deadline for filing belated or revised income tax returns (ITR) for the assessment year 2019-20 (the financial year 2018-19) is approaching fast. The last date for filing tax returns for AY 2019-20 was extended three times earlier in the wake of the COVID-19 pandemic.

Hence, it will be a wiser decision to file returns rather than waiting till the last day in hope of further possibilities of extensions in time-limit and later paying late fees or interests.

Likewise, if you wish to submit corrections in the original returns for the FY19, you have the option to file a belated return. Additionally, there is no relief available on payment of a late fee or interest on tax dues where there is any delay in filing belated returns.

Therefore, let’s understand a little about what belated returns are actually and how penalties on late fees or interest are charged on the same.

 What is a Belated Return?

 An assessee who does not file his return within the prescribed deadline in the income tax act but submits it after the due date is referred to as a belated return.

The due date for the submission of a belated tax return is on or before the end of the relevant assessment year usually filed after 31 July of the assessment year (AY).

In cases where any taxpayer omits the ITR due date (which was 31 August for FY19), he will be levied a penalty of Rs. 5,000 in a case when he will file belated returns till 31 December, and Rs. 10,000 if you file after 31 December till 31 March.

On the other hand, the small taxpayers having an income up to Rs. 5 lakh, a penalty of Rs. 1,000 will have to be provided in case of submission of the belated ITR till 31 March.

Looking into the deadlines, it would be a wise decision to take care of certain timelines to save yourself from any unnecessary penalties and late fee payments. For instance, if a taxpayer has any tax due while filing belated ITRs, he/she will be required to pay interest for the rate 1% for each month of delay starting 1 September of FY19 for such outstanding tax dues. Similarly, if the taxpayers are liable to pay advance tax, he/she will be required to also pay interest on the delay or default on advance tax payments under the respective sections of the Income-tax Act.

For example, if the taxpayer has not paid any amount for advance tax for FY19 or cleared less than 90% of liability of advance tax, an additional interest at the rate of 1% per month or part of the month will be charged on him till the date of the entire tax liability has been paid which will be calculated at the time of filing the return.

Further, due to the circumstances created by a pandemic, where an assessee has a refund to receive from the IT department, he may expect a delay in processing which will initiate only after filing tax returns.

What can be the consequences of the Non-filling of the returns?

If a taxpayer fails to file belated ITR within the due dates, he is likely to receive a notice from the concerned tax department. For assessee who does not have any taxable income and does not file an income tax return, may have to face penalties for the offense of concealment of income.

Where tax payments and returns are not submitted, a penalty of Rs. 5000 could be charged for late filing till December 31, 2020. For making submissions until March 31, 2021, a taxpayer could be charged a heavy sum of Rs. 10000.

If the deadline is not extended further this time, it could be the last time for a taxpayer to file the tax return for FY19 as there will be no permission to as allow the filing of tax return after the due date. Submission of an ITR return is a lengthy process after the due date and is usually acceptable only in exceptional circumstances.

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One Comment

  1. Vivek Gupta says:

    Dear sir,
    i am a non taxable itr holder and every year i use to pay rs.500 to the lawyer but now i know the process to file.So can i file myself of mine and my friends if they request me to file theirs too.

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