ITR Deadline Extended; But Here's Why You Should Pay Taxes For Fy2019-20 Now

For your income earned for the financial year 2019-20, while the assessment year is 2020-21 and in a usual case the return by most individuals and salaried class is to be filed by July 31, 2020. This year with the outbreak of the pandemic has been an exception and considering that while the grant has been allowed for filing of return till November 30, 2020.

ITR Deadline Extended; But Here's Why You Should Pay Taxes For Fy2019-20 Now

There has not been allowed any relief for interest payable on self-assessment tax over Rs. 1 lakh. "The interest payable on tax payable is 1 per cent per month from April to July u/s 234B of the Income Tax Act and it will be 2 per cent per month (1 per cent u/s 234B + 1 per cent u/s 234A) thereafter, i.e. from August to November," said CA Karan Batra, Founder and CEO of CharteredClub.com.

And considering your income tax payable is Rs. 2 lakh then for April to July period, the interest shall be Rs. 2000 on a monthly basis and then it shall be increased to Rs. 4000 until November.

So, here while the relief has been allowed in respect of relaxation in ITR filing, tax payable amount shall still attract interest penalty. And in case if you do not have all the required documents to file your ITR for the last fiscal year 2019-20, still go and pay the tax liability to reduce your interest outgo.

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