If the gross total income of an individual is more than 2.5 lakhs, then he will have to pay a fine of at least Rs 1000 for filing late return. If the taxable income is more than 5 lakhs, then the penalty for that is up to 10 thousand rupees.
Recently the tax department has extended the date of filing income tax return by 3 months. Now for the financial year 2020-21, returns can be filed without late fine till December 31. Earlier this deadline was ending on 30 September. If a taxpayer does not file the return by December 31, then after that he will have to deposit the penalty on filing the return.
According to the rules, after the deadline for filing the return is over, the taxpayer gets the facility of filing with penalty. This penalty can range from 1000 rupees to 10 thousand rupees. However, some taxpayers have been given relief from this. According to section 234F of the Income Tax Act, if the gross total income of a taxpayer is less than the basic exemption limit (2.5 lakh for an individual), then he is not liable to any penalty for filing late return. As per section 139(1), gross income for an individual means the income which is made before deduction of deduction under section 80C and 80U.
Late fee is decided on the basis of total income
This means that if you file late return, how much late fee will be charged or not, it depends on how much your total gross income is. Individuals whose age is less than 60 years and total income is up to 2.5 lakhs, then they will not have to file any return. If income is more than one rupee more than 2.5 lakhs, at least 1000 rupees will be charged as late fee.
Minimum 1000 late fee if gross income is more than 2.5 lakhs
Now let’s talk about the second situation in which the total income of the individual is more than 2.5 lakhs. In such a situation, late fee is fixed. How much late fee will be charged depends on how much taxable income you have. If the taxable income is less than 5 lakhs then it will be 1000 rupees. If the taxable income is more than 5 lakhs then it will be 5000 and 10 thousand rupees. Since the CBDT has already extended the return filing date till December 31. In such a situation, the late fee for filing the return after that will be 10 thousand rupees.
Calculation of Late Fee Based on Net Taxable Income
When deduction is taken out of gross total income, then net taxable income is created. The calculation of tax is done on this basis. The decision regarding late fee is also taken on this income. Late return fee is Rs 1000 if the taxable income is less than 5 lakhs. Late return fee is Rs 5000 till 31st December and Rs 10 thousand after that for taxable income of more than 5 lakhs.
For whom is the exemption limit
Talking about the exemption limit, it depends on the age of the taxpayer and which tax system he has chosen in the new and old. Under the new tax system, the exemption limit is Rs 2.5 lakh, which is for all. As per the old tax rules, it is Rs 2.5 lakh for an individual up to 60 years, Rs 3 lakh for 60-80 years and Rs 5 lakh for taxpayers above 80 years.
