I was recently asked about penalty on filing your income tax returns beyond the due date of 31st July. As you know I've been urging many of my friends on Steemit from India to avoid delaying filing their returns.
IT department is getting stricter as the years roll on and the scrutiny around transactions with cryptocurrency exchanges are on a rise. It's good to keep your paperwork in order at all times.
Many feel there's no need to file your paperwork in time. But remember, you are liable to pay a penatly for filing your returns beyond 31 July, 2018 unless of course for some reason our government decides to extend it.
Late filing fees
If ITR is filed after deadline but before 31st of December of 2018 (assessment year) then the penalty is Rs. 5000. If it's filed between 1st January but before March 31st 2019 then the fine is Rs. 10,000.
How avoid penalty?
If a tax payer's gross income doesn't exceed 500,000 INR then the penalty amount is only Rs. 1000.Budget 2017 brought into effect the law of levying late filing fees under 234F of the Income tax act. This is applicable for FY 2017-2018 and AY 2018-2019.
If your income doesn't exceed the basic exemption limit and you file a delayed return then you are not liable for any penalty.
However, if your income is below 2.5L you are still required by law to file your returns. I advise you to consult your local chartered account to get an expert opinion. There's less than a week to go before the last date for filing your returns.
You can read my post-Benefits of Filing ITR (Income Tax Return) to learn more about the subject.
FY: Financial Year
AY: Assessment Year
If you like my work kindly resteem it to your friends. You may also continue reading my recent posts which might interest you:
- Let's Watch This Fun Video From International Steem Meetup #1—Malaysia
- Why You Should Vote For @firepower As Witness—Witness Campaign Post From India!
- Steem.Chat Contest #36
Follow Me: 