For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

Reasons Why Taxpayers Should Not Wait Till The Extended Due Date To File ITR

|

Paying heed to the pandemic related crisis, the CBDT extended the due date for filing income tax return. And this deadline varies for different taxpayer categories and under different conditions. Before delving on the main topic that is why we should not wait until the last minute and file income tax return (ITR) right away, here we will list out the deadline for filing tax return for different taxpayer categories:

Reasons Why Taxpayers Should Not Wait Till The Extended Due Date To File ITR
 
Taxpayer category Original Due date Earlier revised deadline New revised due date
Individuals or assessees whose accounts are not required to be audited July 31, 2020 November 30, 2020 December 31, 2020 for the FY 2019-20 (Ass year- 2020-21)
Assessees whose accounts are required to be audited (a company, individual or other entities, partner of a firm October 31, 2020 November 30, 2020 January 31, 2021
Filing of tax audit and all other reports September 30, 2020 October 31, 2020 December 31, 2020

Note these deadlines are for AY 2020-21.

And now after you know the due date by when the Return of Income has to be filed by you as per the latest CBDT notification, here are reasons why you should not delay in filing the ITR:

1. Penal interest on due taxes under Section 234A still applicable:

Individual assessees who are not required to get their accounts audited but have self-assessment tax liability of over Rs. 1 lakh should not wait till the last minute granted to file the return of income as penal interest under Section 234A shall still be applicable from the original due date i.e. July 31, 2020 to the actual date of return filing.

Notably for other assessees whose self-assessment tax liability is less than Rs. 1,00,000, on them interest under section 234A shall be levied from the extended due dates i.e. from December 31, 2020 to the actual date of return filing.

What is Section 234A?

Under this section 234A, interest shall be charged if the return of income is filed after the due date or is not furnished. Simple interest at the rate of 1 percent is charged monthly or part thereof, which implies part of a month will be taken as the full month).

 

Here remember, for individual taxpayers original due date shall be July 31, 2020 while for those whose accounts are to be audited, original deadline for the purpose of computing penal interest shall be October 31.

2. Your refunds will also be processed late:

Another reason to not wait for the extended due date to file the ITR is such that your refunds if any can be claimed early and hence get processed faster. In an usual case, the department of income tax takes about one month's time to process income tax refunds.

Refunds here are claimed in respect of the excess tax paid or excess TDS or TCS collected at source.

Also, one can file the return of income after the due date for doing so has passed up to a certain allowed time. But in such a case a penalty implication arises for the assessee and not complying with income tax laws and non-filing of ITR is a punishable offence as per the Income Tax Act.

GoodReturns.in

Read more about: itr itr filing coronavirus
Story first published: Thursday, November 5, 2020, 20:19 [IST]
Company Search
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X