Paying income tax on time is the responsibility of each eligible citizen of a country. If an individual fails to pay the income tax on time, then there are some penalties.
Penalty Charges:
The maximum penalty for filing a late income tax return is INR 10,000 (depends on the annual income). Let's discuss the penalty charges in brief below:
Filings of income tax return dates:
1. 31st July/30th September
2. 31st December
3. 31st March
If you are filing the ITR before 31st July (or extension case, 30th September), then there is no penalty.
If you are filing the ITR after 31st July (or extension case, 30th September) and before 31st December, then the penalty charges are as follows:
1. For a total income of less than INR 5 LPA, charges will be INR 1,000.
2. For a total income of more than INR 5 LPA, charges will be INR 5,000.
If you are filing the ITR after 31st December and before 31st March, then the penalty charges are as follows:
1. For a total income of less than INR 5 LPA, charges will be INR 1,000.
2. For a total income of more than INR 5 LPA, charges will be INR 10,000.
Prosecution Penalty:
If an eligible individual doesn’t file the ITR within a certain or an extended time, then as per rights given to the income tax officer the individual can face a fine and a term of 3 months to 2 years prosecution. The prosecution period can be extended up to 7 years in case the individual income exceeds INR 25 LPA.
Other Penalties:
1. If the ITR isn't filed on time, losses (other than house property loss) will not be accountably forward to subsequent years.
2. Along with penalty charges, an interest of 1%/month will be levied until the individual pays the amount which is inclusive of interest, penalty, and tax return).
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Yogesh Pant, CEO of Spectra Outsource Solutions.
Established in 2006 with an aim to support and provide start-up solutions to SMEs as well as MNC corporates. We encapsulate a dominant market presence of more than a decade.