This time the income tax return has to be filed by 30 November, the taxpayer is fined for not depositing the tax on time.
Due to the corona epidemic, the government has extended the deadline for filing Income Tax Return (ITR) many times. Due to this, now tax returns for 2018-19 and 2019-20 can be filed till November 30. In such a case, tax-payers should file ITR in time. Taxpayers are fined for not depositing tax on time.
Will have to pay a fine of 10 thousand
The Central Government has made arrangements to collect late fees for late filing of ITR. Under Section 234A of the Income Tax Act, the taxpayer will have to pay interest on the amount of tax every month at a simple rate of 1 per cent. Apart from this, if someone files ITR after November 30 and before December 31, then late filing fee of Rs 5,000 will be recovered. At the same time, if the return is filed after December 31, then the taxpayer will have to pay a late fee of Rs 10,000. Taxpayers whose income is not more than 5 lakh rupees will have to pay only 1 thousand rupees as late fee. If you do not pay income tax, the Income Tax Department can issue notice to you.
Late ITR filing has many disadvantages
Due to the delay in filing ITR, the taxpayer has to pay the fine as well as many types of income tax exemption. This does not provide exemption under Section-10A and Section-10B of the Income Tax Act. At the same time, you will not get the rebate available under Section 80 IA, 80IAB, 80IC, 80ID and 80IE. Apart from this, the taxpayer will not get the benefit of deduction under Section 80 IAC, 80IBA, 80JJA, 80JJAA, 80LA, 80P, 80PA, 80QQB and 80RRB due to late filing of the income tax return.
ITR can be filed by November 30 for the financial year 2018-19
In the Corona era, the central government has extended the deadline to file income tax returns for the financial year 2018-19 till 30 November, giving relief to taxpayers. Earlier, its last date was set as 30 September. Earlier, the Income Tax Department had extended the date for filing Income Tax Return (ITR) for the financial year 2019-20, giving great relief to the taxpayers. Taxpayers will be able to file ITR by 30 November 2020.
There are many advantages to file ITR
1. Ease of getting a bank loan
ITR is proof of your income. All government and private institutions accept it as income proof. If you apply for a bank loan, banks often ask for ITR. If you file ITR regularly then you get a loan from the bank easily. Apart from this, you can easily avail services other than loans from any financial institution.
2. Required for visa
If you are going to another country, when you apply for a visa, you can ask for the income tax return. Visa authorities in many countries ask for an ITR of 3 to 5 years for a visa. Through ITR, they check what is the financial status of the person who wants to come to their country.
3. ITR receipt is very useful
The ITR receipt is sent to your registered address, which can serve as an address proof. Apart from this, it also acts as income proof for you.
4. ITR is necessary to start your own business
If you want to start your own business then filling ITR is very important. Apart from this, if you want to get a contract for a department, then you have to show ITR. To get a contract with a government department, the ITR of the last 5 years has to be paid.
5. Necessary for high money transactions
If you make any transaction of more money then ITR proves to be helpful for you. Due to filing ITR on time, you do not run the risk of getting notice from the Income Tax Department after buying or selling property, depositing the large amount in the bank, investing in the mutual fund.
6. ITRs demand insurance companies for more insurance cover
If you want to get an insurance cover (term plan) of one crore rupees, then the insurance companies can ask for ITR from you. In fact, they rely on ITR only to know the source of your income and to check its regularity.