Sage-Tips

What happens if you miss your ITR deadline?

A late filing fee will be levied if you file a belated tax return, i.e., after the deadline. Until assessment year (AY) 2017-18, there was no penalty for filing belated income tax returns. But if no tax is payable, the taxpayer won’t be liable to pay this interest solely due to the belated filing of ITR.

What is the penalty for late filing of ITR for AY 2020-21?

With effect from FY 2020-21, a person filing belated ITR will have to pay a penalty of up to Rs 5,000. There is a relief given to small taxpayers — the IT department has stated that if the total income does not exceed Rs 5 lakh, the maximum penalty levied for delay will be Rs 1000.

Can I file tax return after deadline?

If you miss the deadline, you still must file your return, but it may end up costing you more because of late-filing interest and penalty charges. If you are due a refund, the IRS will not penalize you for filing your tax return late.

What is ITR late fee?

Late Filing Fees u/s 234F The maximum penalty is Rs. 10,000. If you file your ITR after the due date (30th Sep) but before 31 December, a penalty of Rs 5000 will be levied. For returns filed later than 31 December of the relevant assessment year, the penalty levied will be increased to Rs. 10,000.

What is the penalty for late tax filing?

What Is the Penalty for Filing a Tax Return Late? If you file your 2021 Tax Return after the deadline and you did not get an extension, then you will be assessed a penalty of 5\% of your balance due per month or part of a month a return is filed late (for up to five months).

Can I file taxes 2 years late?

Even so, the IRS can go back more than six years in certain instances. Unfortunately, there is a limit on how far back you can file a tax return to claim tax refunds and tax credits. This IRS only allows you to claim refunds and tax credits within three years of the tax return’s original due date.

What happens if I don’t file it returns?

If an individual misses the income tax return (ITR) filing deadline (i.e., December 31, 2021 for this year), then he/she will have to pay a penalty at the time of filing belated ITR. (Click here to find out how much penalty one will have to pay for missing the ITR filing deadline.)

How do I backdate a tax return?

If you have received a notice from the Income Tax Department asking you to file your returns that go beyond 2 financial years, you can log on to www.cleartax.in to prepare your returns. You can then print this return and submit it to the Income Tax Office in your ward.

What happens if I file my ITR late?

Further, here are your options in case you want to file your ITR post the deadline: If you file your ITR after the deadline, then a late filing fee will be levied. Until assessment year (AY) 2017-18 there was no penalty for filing belated income tax returns. However, this penalty is applicable from AY 2018-19.

What is belated ITR filing?

Belated ITR filing is available for those who missed doing so within the stipulated deadline. This attracts a late filing fee under Section 234F of the Income Tax Act and the penalty payable by assessees filing a late return increases based on the degree of delay.

What is the deadline for filing ITR for FY2021?

Generally, taxpayers are required to file ITR (without a belated fine) by July 31 of any year (unless extended by the government). For FY2019-20 (AY2020-21), the Central Board of Direct Taxes (CBDT) had extended the last date for filing ITR to January 10, 2021 due to the coronavirus pandemic.

What happens if you fail to file tax returns on time?

So here’s what happens if you fail to file tax returns on time: 1. If a taxpayer misses the due date to file ITR, then his or her returns will be processed late due to which the refund amount will be released by the government later. Also Read — ITR Filing: Complete these tax-related tasks before March 31 deadline to avoid heavy penalties