Filing Late Income Tax Return (ITR): Here are the outcome
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.
Filing your profits tax on time on or earlier than the due date is the maximum vital assignment for any taxpayer. Late submitting of profits tax returns takes away many blessings from the taxpayer. Apart from lesser exemptions, the taxpayer may be required to pay excellent as well. Taxpayers ought to keep away from the exercise of submitting belated go back. The following are the effects of postpone in submitting the go back of profits via way of means of a taxpayer:
Losses:
Losses aside from the loss from residence assets can't be carried forward.
Levy of Interest U/S 234A:
The taxpayer is vulnerable to pay easy hobby at 1% in line with a month or a part of a month for postponing in submitting the go back of profits.
Late Filingcosts:
An overdue submitting charge beneath neath phase 234F is levied for go back filed from AY 2018-19 onwards. If a go back is filed after the due date however earlier than December thirty first of the evaluation year, an overdue submitting charge of ₹five,000 is charged. If the go back is filed later than December 31, an overdue submitting charge of ₹10,000 is payable. However, the wide variety of overdue submitting costs to be paid can't exceed ₹1,000 if overall profits do now no longer exceed ₹five lakh.
Lesser Benefits:
Apart from paying the penalty, a taxpayer will even allow the move of positive exemptions and deductions for that year. The exemptions and deductions so that you can now no longer be to be had if ITR is filed overdue are as below:
- Exemptions under section 10A, section 10B to the new establishments are not available
- Deduction under 80-IA, 80-IAB, 80-IB, 80-IC, 80-ID, and 80-IE, in respect of profits and gains from industrial undertakings or enterprises engaged in infrastructure development, are not available
- Deduction under 80IAC, 80IBA, 80JJA, 80JJAA, 80LA, 80P, 80PA, 80QQB and 80RRB are not available
