Penalties Charged if ITR not Filed

Last date for taxpayers to file ITR of the assessment year 2020-2021 was extended to January 2021 for the individual taxpayer. Delaying the filing of ITR can lead to the penalty, but there are other consequences and inconveniences associated with it as well.

Let's have a detailed look into it:

Penalty Under Section 234F

Failing your ITR can lead an individual to pay the maximum penalty of Rs. 10,000. This penalty comes under section 234F of the Income Tax Department, which came into effect on 1 April 2017 to avoid delay in ITR filings.

If the taxpayer files the ITR for the financial year of 2019-20 on or before 10 January (excluding the audit and transfer cases), there will be no penalty. But after 10 January, there will be a maximum penalty of Rs. 10,000.

There is some relief for small taxpayers from the Income Tax Department.

Late Filing Fee Details

Less Time for Revising Return

Filing an ITR on the due date can lead to making an error in the taxpayer's form as the taxpayer fills in the form in such a hurry. Under the changed rules, taxpayers have time till the end of the financial year to correct their mistakes.

But, if the taxpayer files the ITR on the due date, then there will be no time to make any corrections. That is why if a taxpayer files the ITR earlier, there will be a window of a year to check your return for errors if any.