The due date for submitting the revenue tax returns (ITR) for the monetary yr 2020-21 ended on 31 December final yr. Those that haven’t but filed their revenue tax must pay a late charge. Nevertheless, there are few who can file their ITR and not using a penalty even after the due date.
Until 2021, if a taxpayer missed the ITR submitting deadline, the utmost penalty she or he would have needed to pay was ₹10, 000.
Nevertheless, with impact from FY21 (AY 2021-22), the penalty quantity has been lowered to ₹5,000.
Who won’t should pay penalty for lacking the ITR submitting deadline?
In keeping with the revenue tax legal guidelines, people with gross complete revenue beneath the fundamental exemption restrict won’t should pay penalty for submitting a belated ITR.
The essential exemption restrict relevant to an individual will depend on the tax regime chosen by him/her. Below the brand new regime, the place there aren’t any frequent exemptions, the fundamental exemption restrict shall be ₹2.5 lakh regardless of his/her age.
Nevertheless, below the outdated revenue tax regime, the fundamental exemption restrict would rely on the age of a person.
Please be aware that below the outdated tax regime, the fundamental exemption restrict for resident people beneath 60 years is ₹2.5 lakh and it’s ₹3 lakh for people above 60 years however beneath 80 years. The essential exemption restrict for residents above the age of 80 years is ₹5 lakh.
If these phrases apply to an individual, he/she’s going to be capable to file ITR with out paying penalty even after the due date.
Nevertheless, there are two exceptions even for individuals who match the fundamental exemption restrict standards. Sure part of people are required to compulsorily file revenue tax even when the gross complete revenue is decrease than the fundamental exemption restrict.
For instance, those that fall below the seventh proviso of Part 139(1) must pay a late charge even when their gross complete revenue is decrease than the fundamental exemption restrict.
1) Those that have deposited an quantity or combination of quantities exceeding ₹1 crore or extra in a number of accounts maintained with a financial institution or co-operative financial institution fall below the above-mentioned class.
2) Those that have incurred an expenditure of an quantity or combination of quantities exceeding ₹2 lakh for them or another particular person for journey to a overseas nation additionally fall below the class
3) Those that have incurred expenditure of an quantity or combination of quantities exceeding ₹1 lakh in direction of electrical energy consumption fall below the class as properly.
The second exception is when a taxpayer owns overseas property akin to shares of a overseas agency. In easy phrases, if a person’s gross complete revenue is beneath the fundamental revenue threshold however you’ve got revenue from overseas property, then you’re required to pay a penalty for submitting a belated ITR.
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