If you are also in the habit of procrastinating important tasks at hand, do no more in the case of your income tax return filing. This is because not just penalty implications arise, you are also disallowed some of the benefits that are otherwise granted to tax filers who file their tax return in the due time prescribed for them.
ITR filing is done to save taxes, which is provided through provisions in the Income tax act by way of certain deductions allowed on expenses and investments made by the earning individual.
So, other than penalty here are listed the list of repercussions you have to deal with for delay in filing of Income tax return.
However, the department does allow taxpayers to claim a certain sum on their investments by filing ITR. Simply put, ITR helps taxpayers to reduce their taxes. However, there are rules that have to be followed and one of them is to do it on time. If not done, then you will end up paying a host of penalties.
1. Penalty: As per the new ruling that was enforced from April 1, 2018, for late filing of return that crosses the deadline of March 31, 2019, for income over Rs. 5 lakh, individual can be charged a maximum penalty of Rs. 10,000. This is as per section 234F which states that penalty fee will be levied for not furnishing income of return under section 139.
For those with income below Rs. 5 lakh, a maximum penalty is levied as Rs. 1000.
2. Revision of returns now only allowed for up to year: For FY 2017-18 ITRs, the revision in respect of any omissions or errors can now be made only up till a year and earlier the window for the same has been 2 years.
3. Carry forward of losses not allowed: If the ITR is not filed in due time, the chances are high that for any losses, you may not be allowed to carry forward the same to the following year. But this is not true in case of losses due to house property and even without filing ITR in the due time, the losses arising from this account can be carried forward.
4. Interest: For every month of part of the month, for which the tax dues remain unpaid, as per section 234 A, an interest of 1% is levied. So, the calculation of this interest amount as and when the due date for filing ITR is crossed and one cannot escape this payment.