An individual should be aware of that the Income Tax (I-T) department permits him to file their ITR even after the date is lapse? If an individual falls to deposit the tax by the deadline, He has the chance of filling the returns within the assessment year (AY), which is 2019-20. Before the completion of assessment by the I-T department, an individual can file a belated return till March 31, 2019. It is much obvious that it comes with a cost which Individual has to bear.
If Individual has to pay Rs 5000 as a penalty if he files his return after the due date but before December 31 of the assessment year. A person having income above Rs 5 lakhs has to pay a late fee of Rs 10000 is to be paid by the person if the filling of the ITR is done within January 1 and March 31 of the assessment year 2019-20 as a penalty. A person has to pay a penalty of up to ₹1,000, in case you file it on January 1 and March 31 of the assessment year 2019-20 and your income is below₹5 lakh,
“Penalty is mandatory now. If you have missed the deadline, the tax returns can’t be filed unless you pay the penalty. This came into effect last year,”
said Prakash Hegde, a Bengaluru-based chartered accountant. Under section 234A, interest is levied for delay in filing the return of income. Interest is levied at 1% per month or part of a month. The nature of interest is simple interest. In other words, 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.
YOU CAN BE SENT TO JAIL
The tax department can post you a report in case you fail to file your ITR altogether, and it can also supervise to prosecution. The jail course can range from three months to two years if you fail to file your Income Tax Return. Imprisonment of up to seven years Individual can also get. A Jail duration varies depending on the due tax amount.
“As per the law, prosecution proceeds can be initiated. However, if the return is filed before the end of the assessment year, the prosecution is not initiated. The prosecution is an extreme step taken only if someone doesn’t file in the required assessment year and the amount involved is huge, or if the Individual has undeclared money. Sometimes it is initiated if the income tax officer has issued a notice and the taxpayer has not responded or filed the returns. It happens in exceptional cases,” said Hegde.