The due date of
furnishing Income Tax Return for FY 2018-19 has been extended till 31st July,
2020 and for FY 2019-20 till 30th November, 2020.
There are many benefits
of filing the Income Tax Return but there are some adverse consequences of
Non-Filing of the Income Tax Return which includes Penalty under Section 271F
of Income Tax Act, 1961, Interest under Section 234A of Income Tax Act,
1961, Non-Carry Forward of Losses, Claim of Refund of Taxes, Prosecution
for Failure to Furnish Return of Income etc.,
The same in
detailed are listed below:
1. Interest under Section 234A of Income Tax Act, 1961: Default in furnishing ITR may attract Interest @1%
per month and part thereof up to the date of filing of the return, on such
unpaid tax amount.
2. Non-Carry forward of Losses: Losses will not be allowed to be carry forward if
the income tax return is filed after the deadline. However, the loss under the
head “Income from house property” can be carried forward even if the return of
income/loss is furnished after the due date of furnishing return.
3. Claim of Refund of Taxes: Interest
on refund u/s 244A may be lost as delay in filing is attributable to you for
the period by which you have filed late return.
4. Penalty u/s 234F: If
a person fails to furnish return before due date, the assessing officer may
levy a penalty in the following manner:
|
Date
of filing
|
Fees
Leviable
|
|
If the return is furnished
after the due date of filing but on or before the 31st day of December
|
Rs. 5,000/-
|
|
In any other case
|
Rs. 10,000/-
|
|
Note: If the total income of the person does not exceed
five lakh rupees, the fee payable under this section shall not exceed one
thousand rupees.
|
|
5. Prosecution for failure to Furnish Return of
Income: In case the return of Income is
not furnished before the due date, don’t be surprised if you receive notice
of prosecution u/s 276CC.
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