The last date for filing income tax return for the taxpayers in India is 31st July in almost all cases except audit cases. Income Tax Return Filing is considered to be one of the most important tax compliances for each taxpayer in India. It is very crucial to keep in mind the due date of ITR filing and file tax return online to avoid unnecessary penalties, late fee and prosecution.
Fees for late filing ITR vary depending upon the category of taxpayers. If you are a tax -filers, you might be curious to know about the quantum of late fees leviable in case of delay in ITR submission. Read this article for more.
What is the penalty for late or delayed filing of Income Tax Returns?
Penalty or late fee for delayed ITR filing depends upon the category of taxpayer. It may also vary based on the period of delay in submission of ITR online. Let’s have a look:
Penalty on late filing- Individuals/ HUF
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Total annual income up to Rs. 2.50 Lakhs
If an individual or HUF with total income up to Rs. 2.50 Lakhs fails to file ITR online on or before due date of ITR, no penalty or late fees is charged by the Government.
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Total annual income above Rs. 2.50 Lakhs but up to Rs. 5 Lakhs
If an individual or HUF is earning total annual income beyond Rs. 2.50 lakhs but not more than Rs. 5 Lakhs, they will have to pay Rs. 1,000 late fees in case of delayed filing income tax return.
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Total annual income above Rs. 5 Lakhs
If an individual or HUF is earning total annual income above Rs. 5 Lakhs, they will be liable to pay Rs. 5,000 late fees in case of late filing ITR.
Penalty for late filing income tax return will be same whether you are a salaried individual or a self-employed person.
Penalty on late filing- Companies/ Firms/ LLP
In case of companies/firms/LLP, penalty on late filing of income tax return varies from individual or HUF. Though, the quantum of maximum penalty cannot be more than Rs. 5,000.
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Total annual income up to Rs. 5 Lakhs
If a company/ partnership firm/ LLP fails to file income tax return timely, it will have to pay penalty of Rs. 1,000 for delayed filing ITR online in case their total annual income is not more than Rs. 5 lakhs.
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Total annual income above Rs. 5 Lakhs
If a company/ partnership firm/ LLP is having total annual income above Rs. 5 Lakhs but fails to file ITR timely, it will be liable for a late filing fee of Rs. 5,000 in addition to tax payable.
Is penalty or late filing fees liable in case of taxpayers having income below taxable limit?
As discussed above, no penalty or late fee is liable in case an individual or HUF is having a total income below taxable limit i.e. Rs. 2,50,000. But, companies, partnership firms or LLPs are not exempted from this late fee even if these are having total income below taxable limit.
Further the Government has placed certain additional requirements for compulsory filing of ITR despite having total income below Rs. 2.50 Lakhs as below:
- If you have deposited an amount or aggregate amount more than Rs. 1 crore in one or more bank current accounts.
- If you have spent Rs. 2 Lakhs or more on foreign travel
- If you have made an expenditure towards electricity consumption more than Rs. 1 Lakh
- If you are an Indian resident and having an interest in foreign asset or having income from foreign assets.
If you fall in any of the above criteria’s, filing of income tax return becomes mandatory for you. Therefore, if you fail to file ITR online timely, you will have to pay the prescribed late fee of Rs. 1,000/ 5,000 even if you don’t have a taxable annual income.
Can a person be imprisoned for non-filing of tax return?
In case a person willfully fails to file his ITR for an assessment year on or before the due date or in response to a notice issued under section 142(1), 148 or 153A, he may be punishable as below:
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Tax evasion exceeding Rs. 25 Lakhs
In this case, the defaulting taxpayer shall be liable for an imprisonment of at least 6 months which may be extended to 7 years in addition to penalty for non-filing ITR.
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In other cases
In other cases, the defaulting taxpayer could be punished with an imprisonment of at least 3 months which may be extended to 2 years in addition to penalty for non-filing ITR.
ITR filing is one of the foremost duties of every individual or non-individual tax-filers. Non-filing of ITR comes with serious repercussions so we must keep due date of ITR in mind and ensure that income tax return is filed on or before such due date. This will save us from unnecessary penalties or late fees or other prescribed punishments.
FREQUENTLY ASKED QUESTIONS
FAQ-1: If I pay all the due taxes but fails to file taxes, what will be the consequences?
In this case, since you have already paid taxes, you will not be liable for any interest under section 234A but the Income Tax Department might issue a notice of non-filing and require you to file ITR with late fee under section 234F.
FAQ-2: Can ITR be filed without paying late fee under section 234F?
If you are making a delayed filing of ITR, you will have to pay late fee of Rs. 1000/ 5000 upfront through challan and mention the details of challan while filing ITR online.
FAQ-3: Is there any exemption to senior citizen from the late fees under section 234F?
No separate exemption has been granted by section 234F to senior citizens in respect of late fees for delayed filing of income tax return.
FAQ-4: Do I need to pay late fee under section 234F if I have also paid interest under section 234A?
Section 234A and Section 234F are not related in any manner and consequences under both sections are independent. Section 234A relates to interest on tax outstanding whereas section 234F relates to late fees for relayed filing of ITR. Thus, you will have to pay late fee under section 234F even if you have discharged the interest on outstanding tax under section 234A.
FAQ-5: What are the ITR Filing Charges?
Any person can file ITR by its own or under consultation of any professional. Professional charges for filing ITR may vary from Rs. 500 to Rs. 5,000.
Disclaimer: The article is meant for educational purposes only. Readers are therefore requested to act diligently and under consultation with any professional before applying the information contained in this article. Taxwink shall not be responsible for any loss or damage caused to any person from the use of any information contained in this article. For user support or tax filing services, you can mail at: support@taxwink.com or click on the following link: https://www.taxwink.com/service/income-tax-return-filing
