Income Tax Return (ITR) filing: Did you not file? Know exactly how much penalty you will have to pay

Income tax return (ITR) filing: Taxes form a major part of the outgo for any salaried employee. However, not everyone has to pay taxes and file Income Tax Return. Yet, it can be said that a majority of working class people are liable to pay taxes. To make tax compliance easier for taxpayers, the Income Tax Department has broken down taxpayers into various groups based on their income and source. Paying income tax return consists of a form that needs to be filled. However, if an ITR is not filed, then you are in trouble as the Income Tax department will impose various penalties on you.

The section 234F of IT Act says:

Without prejudice to the provisions of this Act, where a person required to furnish a return of income under section 139, fails to do so within the time prescribed in sub-section (1) of the said section, he shall pay, by way of fee, a sum of,—

(a) five thousand rupees, if the return is furnished on or before the 31st day of December of the assessment year;

(b) ten thousand rupees in any other case:

Provided that if the total income of the person does not exceed five lakh rupees, the fee payable under this section shall not exceed one thousand rupees.

For your understanding, let’s say if your salary is below Rs 250,000 (the threshold limit below which income is not taxable), then such fee is not applicable as you file your return voluntarily.

However, if your income is above Rs 250,000 but below Rs 500,000, then the late filing fee of Rs 1,000 will be slapped on you.

For all income above Rs 500,000, then late filing fee is prescribed as Rs 5,000 penalty will be imposed on or before December 31 every assessment year. The penalty can go up to Rs 10,000 on other cases.

Hence, it is advisable as a responsible citizen to make sure you file your ITR honestly and do not delay. No one likes to pay extra on their taxes especially in the form of penalties. Also, if you continue to default in filing ITR, then you can also come under the IT-department’s blacklist.

There are 7 forms of ITR which needs to be furnished. These forms ask for various details about income from all sources and indicates the taxes imposed thereon by the Income Tax department.

 

Source:- zeebiz