CBDT doubles penalty for failing to submit ITR before the due date

CBDT doubles penalty for failing to submit ITR before the due date

The CBDT extended the deadline for filing the tax return for the year 2019-20 to 10 January 2021, beyond the usual date of 31 July due to the ongoing coronavirus pandemic. Under the Regulation, individuals under 60 years of age who earn Rs 250,000 or more annually are required to submit an ITR, while the limit for senior citizens or those between 60 and 80 years of age is Rs 500,000. This year, the CBDT increased the penalty amount for missing the deadline by imposing a fine of up to INR 10K as opposed to the INR 5k imposed last year. The procedure of charging late filing fees under section 234F was introduced in the 2017 budget and became effective for the FY 2017-2018 or 2018-19.

The high late filing fee is only relevant if the Gross income of the taxpayer, i.e. income after eligible deductions and tax exemptions, exceeds INR 500k in the existing FY. Individuals with a taxable income of up to INR 500k will have to pay a fine of INR 1k  if they file an ITR after 10 Jan 2021. For individuals with a taxable income of more than INR 500k, the very same penalty will be raised INR 10k.

In the Budget 2019, exemptions to the above-mentioned Income tax rule as a result of the modifications proposed by Govt of India, which specifies that the below categories of persons will not be excluded from the penalty.

1. Individuals who has make the deposited total more than INR 100,00,000/-, shall grow in 1 or more Indian bank accounts.

2. Individuals who have bear expenses more than INR 2,00,000/- due to international Travel.

3. Individuals who incur total costs of INR 2,00,000/- & more because of electricity consumption.

Late filing of ITR fees also confirms that interest payable on the tax refund is calculated on or after April 1 of the relevant AY. In the case of late filings, the individual loses some amount of interest.

CBDT Circular dated on 13th July 2020: CBTD allows to verify previous ITR one time relaxation for verification for the FY 2014-15 TO FY 2018-19  by September 2020

www.carajput.com;CBDT: INCOME TAX

www.carajput.com; CBDT: INCOME TAX

The tax return filer effectively makes a declaration by reviewing the tax return that the information contained in the return are correct.

Normally, the tax return must be checked within 120 days of the filing of the income tax return or any extended date announced by the tax department.

The procedure for filing income tax returns is not complete until the tax return is checked. The return will not be processed by the tax department until, and until confirmed. If not confirmed, the return is invalid.

1) By circular no. 3/2020 of 13 July 2020, CBDT offered one more-time opportunity for taxpayers whose income tax returns had been filed electronically but were awaiting verification.

2) Now any taxpayer whose ITR is pending for verification can verify their ITR by 30 September 2020 or before that date.

3) It is possible to check ITR for the duration 2014-15 to FY 2018-19 via this one-time relaxation scheme

4) All these checked ITRs are to be issued by 31 December 2020 or before.

5) ITRs may be checked by EVC or by a properly signed hard copy being sent to CPC Bangalore.

Note: if any lawsuits against taxpayers have been launched in view of the fact that the taxpayer has not filed a report for that year then the value of relaxation can not be used

Benefits:-

  • In the event of failure to acknowledge return, AO may initiate proceeding u / s 144 as such returns filed are deemed invalid.
  • The carryforward of loss can get permitted, ThanksRajput Jain & Associates

Read the related links:

Tax filing Changes are taken into account when filing ITR for FY-2019-20

How to e-file a return using EVC without sending a signed copy of ITR-V?

Aware of a penalty of Section-234f for late filing of ITR

Relaxation for verification of ITR

Verification of ITR Filing Status

common mistake done while filing ITR

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

Govt has extended numerous time limits under Direct Tax & Benami Act

Govt has extended numerous time limits under The Direct Tax & Benami Acts.

www.carajput.com;INCOME TAX extend time limit

www.carajput.com; INCOME TAX extend the time limit

In consideration of the difficulties faced by taxpayers in fulfilling the legislative and regulatory enforcement requirements across sectors as a result of the outbreak of Novel Corona Virus (COVID-19), on 31 March 2020 the Government adopted the Taxation and Other Laws (Relaxation of Some Provisions) Ordinance, 2020 [the Ordinance], which expanded different time limits, among other items.

In order to provide some relief to taxpayers for creating multiple compliances, on June 24, 2020, the Government issued a Notification, the main features of which are as continues to follow:

www.carajput.com;INCOME TAX extend time limit

www.carajput.com; INCOME TAX extend time limit

the Government issued a Notification, are as follows:  Link

For the period from 14 May 2020 to 31 March 2021, the Finance Minister has already released a decreased TDS rate for specified non-salaried payments to residents and specified TCS rates by 25 percent. The press release dated 13th May 2020, also followed the announcement. In this regard, the appropriate legislative amendments shall be moved in due time.

Thanks

Rajput Jain & Associates

www.carajput.com

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)