ITR filers can avoid penalty and prosecution: Read more

Income Tax Return 2019-20 Last Date:

The tax filing season is here, and all those who need to file the income tax return (ITR) mandatorily have to complete the ITR filing procedure by the due date. The ITR filing last date for the assessment year 2019-20 is July 31. If one fails to file the ITR, then they have to pay a fine if the tax is due to the government. People who are not filing returns in spite of repeated notices from the Income Tax Department, prosecution proceedings may also be initiated against them.

If you miss the due date or filing ITR for the AY 2019-20 even you get delayed by a day will result in a financial loss. If you are unable to furnish the ITR by July 31 2019, the filing may be done till March 31 2020; however, there will a default fee.

Dr Suresh Surana, Founder, RSM Astute Consulting Group, informs, "As per section 234F if the return is not filed till the due date but is filed till 31 December then fees of Rs. 5,000 is to be paid and if the return is not filed even after 31 December then fees of Rs. 10,000 is to be paid. However, where the total income of the person does not exceed Rs. 5,00,000 then fees under section 234F shall not exceed Rs. 1,000."

The ITR filed after the due date but anytime till March 31 of the same assessment year is treated as a belated return. You will have to wait for a notice from the income tax department if you miss filing ITR even after the end of the assessment year.

Besides, if the assessee owes tax to the government, there will be interest payable on the amount of unpaid tax. "In addition to the above late fees, if there is unpaid tax, interest under section 234A at 1 per cent per month or part thereof will be charged on the tax payable till the date of payment of taxes. Interest under section 234B and 234C may also apply," tells Archit Gupta, Founder & CEO ClearTax. The tax liability will be applicable immediately from the next date after the due date, i.e. July 31 till the taxpayer files the ITR.

Dr. Surana says, "As per section 276CC, if person willfully fails to furnish return in due time, then he shall be punishable with rigorous imprisonment for a term which shall not be less than 6 months but which may extend to 7 years and with fine in case where amount of tax sought to be evaded exceeds Rs. 25 lakh. If the amount of tax sought to be evaded exceeds Rs. 3,000 but is up to Rs. 25 lakh then the person shall be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to 2 years and with fine."

Citizens aged below 60 years

Individuals with income below the exemption limit need not file the ITR even though they would have earned income during the financial year. As per age, the basic exemption limit differs. For citizens below the age of 60 and make less than Rs 2.5 lakh, need not file the ITR.

Dr Surana says, "All individuals who have Gross Total Income (before deduction under chapter VI A, including section 80C / 80CCD / 80D / 80TTA / 80G) exceeding Rs. 2.5 lakh are required to furnish their income tax returns. Further, for computing Gross Total Income for this purpose, the amount exempt from long term capital gains u/s 10(38) and deductions under section 10, 10A or 10B or Chapter VI-A need to be added back."

Citizens aged above 60 and below 80

For those aged above age 60 and below 80, the basic exemption limit stands at Rs 3 lakh, and for those above 80 years, the limit is Rs 5 lakh. However, if a taxpayer is taking the benefit of section 87A and using deductions under the I-T Act to reduce his taxable income but ends up paying Nil tax, filing of ITR is a must in that case.

Thus, to avoid a fee or penal interest, make sure you have paid the due taxes and filed the ITR by the due date. Even if you have any confusions regarding the ITR figures, filing within the due date helps as a Revised ITR can be filed later on, thus saving on the fine and penalty.

When it comes to Revised Return, it also has a limitation. "The taxpayer can rectify his mistake by filing a revised return under section 139(5). However, he will not be allowed to file a revised return after the income tax assessment is completely based on the original return filed before," cautions Gupta.