If you fail to file your income tax returns, you will be subject to penalties under various sections of the Income Tax Act.
Following is a list of each type of late penalty for not filing your ITR applicable under different sections. Make sure to read the article to find out if any of these penalties apply to you as well as it return filing
In the event that a taxpayer files his or her income tax return after the deadline, he or she is subject to a penalty
People who earn a living
If you earn less than *2.5 lakhs annually, there is no penalty (no ITR penalty for nil returns).
- The maximum penalty for people earning less than five lakhs a year is one thousand rupees
- If your total annual income exceeds 5 lakhs, you can earn up to $10,000
- In the case of businesses, there is a *10,000 cap
- Up to $10,000 for individuals who work for themselves
Citizens over the age of 65
For senior citizens who meet the following criteria, failing to file an ITR under Section 234F will result in a penalty.
- Age 60-80, annual income greater than 3 lakhs
- An individual who is over 80 years old, with a total annual income of more than five lakhs.
Can People With Incomes Less Than the Taxable Limit Pay a Penalty for Filing Their ITRs Late?
Generally, individuals or organizations whose gross incomes are less than the exemption limit are not penalized if they fail to file their income tax returns by the last due date. From AY 2020-21, the Union Budget 2019 introduced amendments to the Income Tax Act that require ITR filing for taxpayers who meet the following conditions despite not having taxable income to file.
- Spending more than *1 lakh on electricity
- Over 2 lakhs spent on foreign travel by individuals
- Current account holders with deposits totaling more than $1 crore in one or more banks
- In the most recent amendment to the Income Tax Act, there are also provisions that apply to individuals who live in India but earn a living from foreign assets. be required to You must pay the prescribed penalty for failing to file your ITR even if you do not have taxable gross income.
What Is the Best Way To Pay the ITR Penalty?
If you submit your income tax return after the deadline, you are subject to a late filing penalty. Here’s how you can resolve your late filing penalty both online and offline.
Procedures conducted offline
- Go to the website of Income Tax India as a first step
- In the drop-down menu, select Challans from the Forms/Downloads menu on the home page.
- You can download other challans besides ITNS-280 from the following page. Depending on your preference, choose a PDF or Fillable Form option.
- 4: Download the form or obtain it from a bank branch
- The form should be completed completely. You should submit the form along with the penalty amount to a bank’s counter. You can pay with cash or a check and pick up your receipt at the bank.
- If you don’t have this receipt, you won’t be able to prove that you paid your fine later, which could lead to severe penalties. The receipt serves as an acknowledgment of payment and can be used for challan verification in the future.Also Read:
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