Income Tax Return AY 2020-21: Here is how much penalty you will have to pay for late filing

Income Tax Return AY 2020-21: Giving a big relief to taxpayers, the Income-Tax (I-T) Department extended the last date for filing of individual Income Tax returns (ITRs) for FY 2019-20 or Assessment Year (AY) 2020-21 by another month till December 31. This is the second time the Central Board of Direct Taxes (CBDT) has extended the last date for filing of ITR for AY 2020-21. 

While this gives some extra time to file income tax returns, the taxpayers should know that they still need to complete the process before the mentioned date. In case you fail to do so, a hefty penalty can be imposed.  

The penalty for late ITR filing was introduced from 2017-18. A late filing fee is applicable if ITR is filed after the due date which for the current assessment year 2019-20 is December 31, 2020. The maximum penalty for filing ITR after the due date is Rs 10,000 under Section 234F of the Income Tax Act.  If the annual income of the assesse is not more than Rs 5 lakh then penalty for missing due date for filing ITR is Rs 1,000. 

ITR for a financial year should be filed within the prescribed due date for each year failing which interest shall be levied. From FY 2017-18, late filing fee under Section 234A, the taxpayer will be levied an interest rate of 1% every month on delayed ITR.   

Apart from the penalty, the taxpayers won’t be able to make use of deductions and exemptions for that year. 

Deduction under 80-IA, 80-IAB, 80-IB, 80-IC , 80-ID and 80-IE, in respect of profits and gains from industrial undertakings or enterprises engaged in infrastructure development, are not available 

Deduction under 80IAC, 80IBA, 80JJA, 80JJAA, 80LA, 80P, 80PA, 80QQB and 80RRB are not available