Many people appear to believe that submitting tax returns is optional, and hence dismiss it as inconvenient and burdensome. However, many people are unaware that this is not a very healthy approach to tax filing.
The Indian government levies a tax on all people who are liable to pay it on their taxable income.
Taxes are one of the government’s keys and vital sources of revenue, which it utilizes to fund operations such as defense, healthcare, infrastructure, education, and the creation of various welfare packages for the general public.
Because income tax is a percentage of a taxpayer’s income, the government provides many benefits to taxpayers in exchange for their contribution to the country. Individuals must, however, incur a number of penalties if they do not file their ITR on or before the due date.
Tax Help Desk is the best online income tax filing service. Be it GSTR 4 or any Goods and services tax registration, the Tax Help Desk makes your ITR filing India a cakewalk.
Let’s take a closer look at the ITR filing in India and its benefits, as well as what happens if one fails to file an ITR.
What is an ITR?
An income tax return is a document in which a person provides information to the IRS about his earnings and the taxes he owes. The IRS has issued seven different types of income tax, and taxpayers must file an ITR indicating which income tax bracket they fall into until the due date.
It is critical to remember that all taxpayers must pay their taxes on or before the due date and the services that help you file these ITRs are the Income Tax filing Services.
Who Should File ITR?
Anyone whose annual gross income exceeds the basic exemption limit listed in the table below should file an ITR.
|Individuals Below 60 Years||Rs. 2.5 Lakh|
|Individuals above 60 years & Below 80 Years||Rs. 3 Lakh|
|Individuals above 80 Years||Rs. 5 Lakh|
Penalties Charged if ITR not Filed
Delaying the filing of an ITR can result in a penalty, but there are also other repercussions and hassles.
Let’s take a closer look at this blog to learn more:
Penalty Under Section 234F
Failure to file an ITR might result in a maximum penalty of Rs. 10,000. This penalty is imposed under section 234F of the Income Tax Act, which went into force on April 1, 2017. In order to prevent ITR filing India delays.
There will be no penalty if the taxpayer files the ITR for the fiscal year 2019-20 on or before January 10 (excluding audit and transfer instances). However, after January 10th, a maximum penalty of Rs. 10,000 would be imposed.
The Income Tax Department offers some aid to small taxpayers.
Because the taxpayer fills out the form in such a rush, filing an ITR on the due date can result in a mistake on the taxpayer’s form. Taxpayers now have until the end of the fiscal year to fix their mistakes under the new guidelines.
However, if the taxpayer submits the ITR before the deadline, there will be no time to amend any errors. As a result, if a taxpayer files their ITR early, they will have a year to review their return for any problems.
Interest On Payments
Under section 234F of the IT Department, if the taxpayer does not file the ITR on or before the due date, the taxpayer is obligated to pay 1% of the interest rate per month on the amount of tax owed. The penalty will begin immediately after the due date, which is normally July 31 of the assessment year in question. The deadline for the 2019-20 fiscal year was set for January 10th.
If a taxpayer fails to file their ITR on or before the due date, they will not be able to carry their loss forward.
If a taxpayer is entitled to a refund from the Internal Revenue Service for overpaid taxes, they must file the ITR on or before the due date to get the refund.
Furthermore, many people are unaware of the advantages of paying taxes on time.