Income Tax return filing: Complete ITR process before this date or have hefty penalty slapped on you

Income Tax return filing: In an ideal world, you should have filed your income tax return (ITR) by now. But, then that would be too boring, right? So, all those adventurous salaried persons, who are yet to file their income tax return, here is the last chance before you end up paying a higher penalty. The taxpayers need to file belated return before December 31 in order to avoid paying higher penalty from January next year. Even though you can file belated returns till March 31 next year, the penalty amount increases post December 31 - the last day of the year 2019.

Those who file their ITR before the said date, will only have to pay a penalty of Rs 5,000. If you miss the December 31 deadline, you will have to pay Rs 10,000 penalty for filing a belated return. Any ITR filed after the assigned date are considered as belated ITRs. This year, the last date for filing income tax returns was set as July 31 before it was extended to August 31.

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Under Section 234F of the Income Tax Act, the assesses will have to shell out a fine of Rs 5,000 if the return is filed by December 31 and Rs 10,000 for ITR filing after that. If the assessee's total income is up to Rs 5 lakh, the penalty for belated ITR is Rs 1,000 till March 31, 2020. Belated filers are also not allowed any deductions in respect of certain incomes under Chapter VI-A.

Who needs to file ITR?

As per section 139(1) of the Income Tax Act, 1961, any individual whose total income in the financial year exceeds income tax exemption limit (Rs 2.5 lakh for FY 19) is liable to file the income tax return. Also, any private or public company based out of India or doing business in India, firms, Hindu Undivided Family (HUFs), Association of Persons (AOP), Body of Individual (BOI) etc are also liable to declare net profits/losses of the year and pay their tax liability by filing ITR.