Income Tax Return e-Filing for AY 2019-20: Filing ITR is important. So, make quick, informed financial decisions to ensure you don’t miss the deadline.
What happens if you fail to pay income tax on time?
According to the Income Tax rules, if you fail to file the ITR within the prescribed deadline (31 July of the respective assessment year), you may be liable to pay a penalty as per the applicable rate. For taxpayers having an income less than Rs 5 lakh, the maximum penalty goes up to Rs 1,000. If your income is more than Rs 5 lakh, you may be liable for a penalty up to Rs 5,000 if the return is filed after the due date but before 31 December of the AY, and up to Rs 10,000 if the return is filed after 31 December of the relevant AY.
Make quick, informed decisions to ensure you timely file your returns
There is the cost of missing out the due date for filing the ITR, and there is the cost of borrowing fund to pay the tax when you don’t have adequate money in hand. In many cases, the cost of missing the ITR due date is higher than the cost of borrowing the fund to pay for the taxes. For example, if you want to carry forward losses, you may miss it if ITR is not filed on time.