Income Tax Return: Heavy Penalties on Late Filing and Misreporting Income
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Last date for the filing of income tax return for financial year 2019-20 is November 30. The deadline was extended by the Finance Minister in May, as part of the Covid19 relief package. Generally, the last date to file ITR is July 31. And if you miss the deadline to file your ITR, or you make other mistakes like under-reporting or misreporting, you will have to pay a fine. Read on for details:
Late filing of Income Tax under Section 234F of Income Tax Act
If a tax payer fails to furnish the income tax return before deadline, he will be imposed a penalty of five thousand rupees, if the return is furnished on or before December 31 of the assessment year.
The fine amount increases to ₹10,000 if ITR is furnished after December 31 of the assessment year.
If the tax payer falls in the income bracket of upto ₹five lakh, the fine, he will have to pay a fine of ₹1,000.
Under-reporting and misreporting of income Section 270A(1) of Income Tax Act
If a tax payer is found to have under-reported his income, he will have to pay a fine of 50% of the tax payable on under-reported income. This penalty is in addition to the tax which the person will have to pay on the misreported income.
However, if under-reported income is in consequence of any misreporting thereof, the penalty will be equal to 200% of the amount of tax payable on under-reported income.
Misreporting of income includes includes -- suppression of facts, not recording investments in books of account, claiming an expenditure not substantiated by any evidence, recording a false entry in the books, not recording receipts in the books having bearing on total income and failure to report an international transaction.