Date To File IT Returns Extended; Late Filing To Invite Penalty
The Finance Ministry has extended the deadline for filing income tax returns (ITR) by the taxpayers till December 31st 2020 for the financial year 2019-20 (FY20) due to the Covid-19 crisis.
A notification was issued by the Ministry of Finance stating that the due date for furnishing of ITRs for the taxpayers as per the Income Tax Act, 1961 was July 31st 2020 which has now been extended to December 31st 2020.
In the month of May as well, the Centre had extended the date for filing ITR for FY20 from July 31 to November 30th 2020.
To offer relief for small and middle-class taxpayers, the matter of payment of self-assessment tax and the due dates for the payment are also extended.
“The taxpayers, who have not yet paid their complete tax liability and are required to pay self-assessment tax more than Rs 1 lakh, will need to be mindful and pay taxes within original due dates, to avoid charging of interest for filing of ITR beyond original due date” conveyed the notification.
If the accounts of the taxpayers need to be audited, 31st January 2021 is the extended deadline for ITR filing. With the extension in the deadline, it is necessary to file the returns in time and any delay will lead to further consequences and individuals will have to face penalties and late filing will also prevent the tax benefits for the taxpayers.
In the case of late filing, the taxpayer would be liable to pay simple interest at 1 per cent in a month. However, the amount of late filing fees cannot exceed Rs 1,000, if the total income is within Rs 5 lakh.