How much interest and penalty will be levied if income tax return is filed after the last date?



interest and penalty for late filing of itr u/s 234A & 234F in hindi – At present income tax return is being filed by many people, out of which it is mandatory for many people to file income tax return and many people want to file their income tax return. Will file it.

Also, many people file ITR only to claim their TDS refund .

The reason for filing your income tax return can be anything, but the most important thing in itr filing is to file it before the due date.

Because, if you file it after the due date, you are bound to file it with interest and penalty .

You must have seen that many times the taxpayer does not file his income tax return on time or sometimes he does not file it at all.

By doing this, the assessee does not get relieved from his responsibilities and he has to pay interest and penalty as per the Income Tax Act.

Therefore, it is very important for an assessee to file his income tax return on time, as a timely filed return saves him from various benefits as well as interest and penalty.

If you also have to file your income tax return, then for the purpose of income tax, it would be better for you to file it before the due date .

In today's article, we will learn about the provisions of the Income Tax Act 1961, which tell about the interest and penalty for late filing or not filing ITR.

Whether interest will be levied for late filing or non-filing of ITR? (section 234A) – Interest for late filing of income tax return

Late filing or non-filing of income tax return will attract interest in section 234A . Interest under Section 234A will be levied only on those taxpayers who were required to file ITR and filed their ITR late or did not file at all.

Section 234A will not apply to those taxpayers who do not pay any tax and wish to file income tax return on their own volition. Also, this section will not be applicable to those taxpayers whose refund is being made in ITR .

However, if you are required to file an income tax return and have deposited all your tax before the due date and file your income tax return after the due date, you can avoid the additional interest under section 234A.

How much and for what period will the interest be charged in section 234A? – interest under section 234A

In case of late filing of income tax return, simple interest is charged under section 234A, which will be levied at the rate of 1% every month. The part of the month will also be considered as the whole month.

For example: If you have to file income tax return for assessment year 2020-21. The last date to file itr of AY 2020-21 has been extended till 31st December 2020. In this case, you will have to file the return by 31st December 2020.

If you file your return by 31st December 2020, then in this case you will not be charged any interest in section 234a.

However, a new notification has been issued by the government , according to which if your self-assessment tax liability is more than 1 lakh, then the last date for you to deposit this tax will be 31 July 2020.

And if your accounts are to be audited , then in this case the last date for depositing Self Assessment Tax will be 31 October 2020. Thereafter a penalty will be levied on the deposit.

What is the new notification of the government?

According to this notification, if the tax liability of a tax payer is less than 1 lakh, then he can submit it without penalty till the last date of filing income tax return (31st December 2020).

And where the tax payer's accounts are to be audited under section 44AB, it can be submitted by 31 January 2021, as the last date for filing itr for the audited taxpayer is 31 January 2021.

For example, you have to file your income tax return (non audit case) by 31st December 2020 and your self-assessment tax liability is less than 1 lakh.

In this case, if the return is filed by you on January 15, 2021, you will be charged one month's interest under section 234A. Some part of the month will also be considered as the whole month.

How will interest be charged if the tax liability is more than 1 lakh?

If your outstanding tax liability is more than Rs 1 lakh, then the interest under section 234A will be calculated on you from July 31, 2020 (non audit case) till the date of filing of income tax return.

But, if your accounts are to be audited, then interest will be calculated from 31st October, 2020 onwards.

How will interest be calculated? – calculation of interest under section 234A

In section 234A, interest is levied on the amount of tax that remains outstanding on you after the due date of ITR.

The outstanding tax amount will be worked out as follows –

Tax determined u/s 143(1) or on Assessment u/s 143(3)/144/147/153A***
Less: TDS/TCS***
Less: Advance Tax***
Less: Self Assessment tax paid***
Less: Relief of tax u/s 89/90/90A/91***
Less: MAT Credit u/s 115AA***
Less: AMT Credit u/s 115JD***
Remaining Tax (After due date)*** (Interest will be charged on the amount in 234A)

Will there be a penalty for filing income tax return after the due date? ( Penalty for late filing of income tax return)

Prior to the assessment year 2018-19, no penalty was levied for late filing of income tax return .

But, “a new section 234F has been added to the Income Tax Act 1961 with effect from the assessment year 2018-19.”

According to this section, if any assessee files his income tax return after the due date, then penalty will be imposed on him.

The amount of penalty depends on the income of the taxpayer and the date of filing the return by him.

The penalty of section 234F is in addition to the interest specified in section 234A.

What is the maximum penalty that can be imposed on a taxpayer for filing ITR after the due date? (section 234f)

If a person files his income tax return after the due date, then penalty under section 234F will be imposed on that person.

This means that income tax returns person that files no matter if it is income tax returns after the due date, so that as section penalty mandatory 234f to set up will be.

“Amount of penalty” : If the total income of a person exceeds 5 lakhs –
  • If income tax return is filed by a person after 31st December 2020 and before 31st March 2021, then a maximum penalty of 10,000 will be levied on him. ITR cannot be filed after March 31, 2021, although this date can also be extended later by the government.
  • In the case of a person conducting a tax audit after January 31, 2021, a penalty of Rs 10,000 will be imposed on itr filing under section 234f.
If income is less than 5 lakhs –

If the income of a person is less than 5 lakhs and he files his ITR after 31st December 2020, then a maximum penalty of 1000 will be imposed on him.

To avoid these penalties and interest, you must file your income tax return on time. Also, if your TDS refund is being made, file it well in advance instead of waiting for the last date, as this will help you get the refund faster.

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