ITR Filing: Disadvantages of filing tax return late, know why tax should be filed before the deadline

This is the third time the central government extends the dates for filing the income tax dues for FY 2018-19 (AY 2019-20).

In view of the pandemic spread due to coronavirus, the deadline for filing Income Tax Return (ITR) for the financial year 2020-21 was extended twice.

First it was extended from 31st July to 30th September 2021 and then it was extended till 31st December, 2021. In such a situation, now the last date for filing ITR is December 31, 2021.

If for some reason you are not able to file your ITR before the deadline of December 31, 2021, then you may have to pay a penalty. Due to the coronavirus pandemic and glitches on the newly launched income tax portal, the government has also extended the due date for filing Belated ITR till March 31, 2022.

You should know that the government has made arrangements to collect late fees for late filing of ITR. Under Section 234A of the Income Tax Act, the taxpayer will have to pay interest on the amount of tax at the simple rate of one per cent every month. If you file ITR after the last date fixed by the government, you will be charged a late filing fee of Rs 5,000.

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In case of delay in filing ITR, the taxpayer has to pay the penalty as well as many types of income tax exemptions are also not available to such people. Along with the fine, the exemption under Section-10A and Section-10B of the Income Tax Act is also not available. At the same time, such people also do not get the exemption under Section-80IA, 80IAB, 80IC, 80ID and 80IE.

Also, due to late filing of income tax return, the taxpayer does not get the benefit of deduction under Section-80IAC, 80IBA, 80JJA, 80JJAA, 80LA, 80P, 80PA, 80QQB and 80RRB of the IT Act.

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