December 31 is the last date to file your income tax return (ITR) for financial year 2019-20 — or assessment year 2020-21 — without any penalty charges. This year, the Income Tax Department on multiple occasions extended the due date for income tax assessees to file their income tax returns (ITRs), in order to ease the tax-filing process due to the coronavirus crisis. Simply put, income tax assessees now have a couple of days to file their ITR for the income earned between April 1, 2019 and March 31, 2020. Normally, the due date for filing ITRs for all assessees whose accounts are not required to be audited is July 31.
In view of constraints being faced by taxpayers due to COVID-19,CBDT further extends due dates for various compliances for FY 2019-20:— Income Tax India (@IncomeTaxIndia) October 24, 2020
The due dt of furnishing Income Tax Returns(ITRs)for taxpayers whose accounts require to be audited has been extended to 31st, January,2021 (1/5) pic.twitter.com/cWWbXu80K9
Here are few important things to keep in mind while planning your taxes:
Filing the income tax return after the due date will attract penalties from the income tax department, depending on the degree of delay.
Income tax is levied on taxpayers on the basis of a slab system. According to the income tax department, there are three categories of individual taxpayers — individuals (below the age of 60 years) which includes residents as well as non-residents, senior citizens (60 years and above but below 80 years of age) and super senior citizens (above 80 years of age).
In the general category, individuals with annual income up to ₹ 2.5 lakh are not liable to pay income tax.
Senior citizens (aged 60 years or above but less than 80 years) whose income are up to ₹ 3 lakh are exempted from paying tax. For super senior citizens, aged 80 years and above, income up to ₹ 5 lakh is exempt from tax.
(Also Read: Your Guide To Popular Income Tax Benefits)
The taxman has stipulated a penalty amount ranging from ₹ 5,000 to ₹ 10,000 for filing of income tax return for assessment year 2018-19 after the due date.
The amount of money charged as penalty or fine for a belated ITR increases will be based on the degree of delay, said Income tax department.
The Income Tax Department has also mandated the public to verify the income tax return after submitting it.