The date for filing belated Income Tax Return (ITR) for the financial year 2020-21 (FY 2020-21) is approaching. However, its due deadline of December 31, 2021 has passed. If you have not been able to file the ITR then you can file the belated ITR by the due date 31st March, 2022. After the deadline for filing returns for a financial year is over, the taxpayer has a chance to file the belated ITR.
If taxpayers do not file ITR by March 31, 2022, then the Income Tax Department can impose a penalty of not less than 50 percent of the tax liability. Tax and investment advisor Balwant Jain says that the problem for such taxpayers does not end here. The Income Tax Department can prosecute them for not filing ITR. Under the existing Income Tax Act, there can be a minimum of three years of imprisonment and a maximum of seven years. The Income Tax Department can initiate a lawsuit only if the tax liability exceeds Rs 10,000.
If you miss, you will not get interest on refund
Balwant Jain explains that if the taxpayer does not file the return even by the due date i.e. March 31, 2022, then in this situation, he will not get interest on the refund even if he is entitled to return more tax than the liability. If the taxpayer has deposited less tax than the liability, then interest has to be paid.
Will be fined Rs 5,000
Under section 139(1) of the Income Tax Act, the penalty under section 234F is to be paid for not filing the return within the prescribed time limit for any assessment year. In this way, the billed ITR can be filed till March 31, 2022 with a penalty of Rs 5,000. Earlier the fine amount was Rs 10,000, which has been reduced to Rs 5,000. If the total income of the taxpayer does not exceed Rs 5 lakh, then he will have to pay a fine of Rs 1,000 only.
It is not necessary to file ITR if the earning is less than 2.5 lakhs
Under section 234F of the Income Tax Act, if a person’s income is less than the limit of total basic deduction (exemption), then he will not have to pay any penalty even while filing ITR. That is, even without claiming any deduction, if the total income is less than Rs 2.5 lakh, then no penalty will have to be paid while filing ITR.
In these cases, it is necessary to file return even on earning less than 2.5 lakhs.
In some cases, you have to file ITR even if the total income is less than Rs 2.5 lakh. If you have deposited an amount of one crore rupees or more in any current account. Have spent Rs 2 lakh or more on foreign travel. If you have paid electricity bill of one lakh rupees or more in any year.