The process of filing your income tax returns (ITRs) for the financial year 2017-18 or assessment year 2018-19 will come to an end at on July 31, 2018. The government has in recent times changed several aspects of income tax filing. One critical change is the penalty levied on belated filings.
Till the last financial year, a penalty of Rs. 5000 for late filing was imposed at the sole discretion of an assessing officer under Section 271F of the I-T Act. But from this financial year the provisions of Section 234A will be applicable for individuals who file their return after the July 31 deadline.
Here are the list of penalties that you may have to pay if you fail to file your returns on time.
- If you file your returns after the deadline of July 31, 2018 and before December 31, 2018, you will have to pay a maximum penalty of Rs. 5,000.
- If you file your returns after December 31, you will have to pay a fine of Rs.10,000.
- However, if your income is less than Rs 5 lakh, the maximum penalty levied will be Rs 1,000.
Earlier, two years from the end of financial year were granted to file your revised returns. This has now been changed to one year from the end of financial year. This means in case you commit a mistake while filing your ITR, you will get time till March 31, 2019 to file your revised return for FY 2017-18.
Make sure you file your returns well before time so that you have enough time in hand to do any revisions.