Just a few hours are left for salaried individuals, businesses and professionals with presumptive income to file their Income Tax Returns (ITR) for the Assessment Year 2020-21 (Financial Year 2019-20) as Sunday January 10 is when the extended due date ends.

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Sujit Bangar, Founder of TaxBuddy.com, says there would be a penalty of ₹10,000 for filing ITR after January 10.

After filing the penalty, the ‘belated returns’ can be filed till March 31. However, the returns filed after the due date ( January 10) cannot be revised.

Also, if the return is not filed before January 10, the losses of this year cannot be carried forward and set off next year.

“Lastly, certain deductions and exemptions which are linked to filing ITR before the due date cannot be claimed if filed after January 10,” he said.

Any Indian with a taxable income exceeding ₹2.5 lakh needs to file an ITR. Also, ITR filing has been made mandatory if foreign travel expenses exceed ₹2 lakh a year and if the annual electricity bill is more than ₹1 lakh.

In normal situation, the returns should have been filed on or before July 30, 2020. But due to Covid, the date was extended a number of times.

The last announcement was made on December 30 and taxpayers were given one more extension till Sunday.

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