Penalty on Late Filing

Income Tax Return filing FY 2017-18: Pay up to Rs 10,000 penalty for late filing from this year (from July 2018).

For individual taxpayers, the due date of filing income tax return for FY 2017-18 (AY 2018-19) is July 31, 2018.

Income Tax Return (ITR) needs to be filed by individuals and other category of taxpayers annually once the fiscal year ends. The new fiscal has just kicked in and you would be keen to know all about your Income Tax slab, due date of filing your ITR etc. The ITR this year is applicable for income earned between April 1, 2017 and March 31, 2018.

Penalty on late filing

A very important note that you must make while filing for this year's ITR is the late filing penalty. As per the Income Tax rule, with effect from assessment year 2018-19, if an Assessee fails to furnish return of income within due date as prescribed under section 139(1) then as per section 234F, he will be required to pay fee of:

a) Rs 5000 if return is furnished after due date but on or before 31 December 2018

b) Rs 10,000 if return is furnished after 31 December 2018

However, a little relief for those whose income does not exceeds Rs.500,000. In such cases penalty will be Rs.1,000 only.

"In order to ensure that return is filed within due date, it is proposed to insert a new section 234F in the Act (I-T Act) to provide that a fee for delay in furnishing of return shall be levied for assessment year 2018-19 and onwards in a case where the return is not filed within the due dates specified for filing of return under sub-section (1) of section 139," the memorandum for the Finance Bill 2017 had said.

What is the due date?

For individual taxpayers, the due date of filing income tax return for FY 2017-18 (AY 2018-19) is on July 31, 2018.

For Businesses requiring audit the due date of filing income tax return for FY 2017-18 (AY 2018-19) is on September 30, 2018.

Interest Payable on Late filing.

In addition to late filing fees, Individual taxpayer is liable to pay interest of 1% per month on tax payable amount.

Tax payable = Total tax liability – Tax already paid through TDS, Advance Tax, Self-assessment tax.