Late filing of Income Tax Return (ITR): Here are the consequences
Filing your income tax on time on or before the due date is the most important task for any tax payer. Late filing of income tax returns takes away many benefits from the tax payer. Apart from lesser exemptions, the tax payer will be required to pay fine as well. Taxpayers should avoid the practice of filing belated return. Following are the consequences of delay in filing the return of income by a tax payer:
Losses: Losses other than loss from house property cannot be carried forward.
Levy of interest under section 234A: The taxpayer is liable to pay simple interest at 1% per month or part of a month for delay in filing the return of income.
Late filing fees: A late filing fees under section 234F is levied for return filed from AY 2018-19 onwards. If return is filed after due date but before December 31st of the assessment year, a late filing fee of ₹5,000 is charged. If the return is filed later than December 31, a late filing fees of ₹10,000 is payable. However amount of late filing fees to be paid cannot exceed ₹1,000, if total income does not exceed ₹5 lakh.
Source : Live Mint
Visit our insurance counsellor to analyse your insurability .