This year i.e. 2020-21 was an exceptional year with the world witnessing and going through tough times due to pandemic i.e. Covid-19.
In terms of Income Tax Return filing in India for the F.Yr. 2019-20, the initial due date of 31st July 2020 was extended many times and the final due date was 10th Jan.2021 for normal taxpayers i.e. not covered under Audit etc.
However, taxpayers who could not file the IT return for the F.Yr.2019-20 in time can still file the same up to 31st March 2021 with a late fee.
The late fee leviable depends on the total income i.e.
1. If Total Income is below Rs.2.5 lacs - No late fee
2. If Total Income is above 2.5 lacs up to 5 lacs - Late fee of Rs.1000 is payable
3. If Total Income is above Rs.2.5 lacs - Late fee of Rs.10000 is payable
The Total Income is calculated as Gross Total Income less all the deductions available under Chapter VIA of the Income Tax Act which includes 80C, 80CCC, 80CCD, 80D, 80E, 80G, 80GG, 80I, 80TTA 80U etc.
Please note that any person i.e. Individual and HUF having Gross Total Income above Rs.2.5 lacs is mandatorily required to file Income Tax Return even though there is no tax payable up to an Income of Rs.5 lacs.
Please note the difference between Gross Total Income and Total Income. While the IT return filing is mandatory for taxpayers having gross Total Income above Rs.2.5 lacs, the late fee is not payable for taxpayers having total income below Rs.2.5 lacs.
Let us understand this with an example :
Mr. Ravi working in a Pvt. company draws a salary of Rs.24000/- per month for the F.Yr.2019-20 i.e. his gross salary for the year 2019-20 is Rs. 2,88,000/- He also have saving bank interest of about Rs.7500/- during the year.
Thus his gross total income for the year 2019-20 will be :
Salary Income Rs.24000*12 = Rs.288000/-
Interest from SB Bank = Rs. 7500/-
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Gross Total Income = Rs.295500/-
Less: Deduction - Std. Deduction Rs. 50000/-
Deduction u/s 80TTA Rs. 7500/-
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Total Income Rs.238000/-
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In the above case, Mr. Ravi is mandatorily required to file ITR as his gross total income is Rs.295500/- i.e. above Rs.2.5 lacs.
However, there will be no late fee payable in his case if he files the IT return on or before 31st March 2021 as his total income is Rs.2.38 lacs which is below the threshold of Rs.2.5 lacs.
Thus you can still file your IT return before 31st March,2021 by paying late fee in case you have missed the same due to any reason.
Also the last date to file revised return for the F.Yr. 2019-20 is also 31st March 2021 after which you will not be able to rectify/revise your IT return. In case you have missed/omitted any income or have shown wrong deductions/mistakes which you have wanted to rectify, please file the revised return on or before 31st March 2021 otherwise you may end up getting notices, etc.
Please note that non-filing of IT return may lead to penalty and prosecution and will also lead to notices u/s 148 (re-opening of assessments) later.
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