Penalty for Late Filing Income Tax Return

Taxpayers who do not file their income tax return on time are subject to penalties and charged interest on the late payment of income tax. Also, the penalty for late filing income tax returns on time has been increased recently. The penalty for late filing income tax return is now as follows:

Late Filing between 1st August and 31st December – Rs.5000

Late Filing After 31st December – Rs.10,000

Penalty if taxable income is less than Rs.5 lakhs – Rs.1000

Income Tax Return Due Date

The due date for income tax return filing is 31st July of every year for individual taxpayers. The due date for income tax return filing for companies and taxpayers requiring tax audit is 30th September. Section 44AD of the Income Tax Act deals with tax audits under Income Tax Act.

 Business

In the case of a business, a tax audit would be required if the total sales turnover or gross receipts in the business exceeds Rs.1 crore in any previous year.

 Professional

In the case of a profession or professional, a tax audit would be required if gross receipts in the profession exceed Rs.50 lakhs in any of the previous years.

 Presumptive Taxation Scheme

If a person is enrolled under the presumptive taxation scheme under section 44AD? and total sales or turnover is more than Rs. 2 crores, then a tax audit would be required.

 The penalty for late filing income tax returns has been increased to Rs.5000 for returns filed between 1st August and 31st December.