Late filing of Income Tax Return (ITR): Here are the consequences

The following are the consequences of delay in filing the return of income by a tax payer:

Losses: Losses other than the loss from house property cannot be carried forward.

Levy of interest under section 234A: The taxpayer is liable to pay simple interest at 1% per month or part of a month for delay in filing the return of income.

Late filing fees: A late filing fees under section 234F is levied for return filed from AY 2018-19 onwards. If return is filed after due date but before December 31st of the assessment year, a late filing fee of 5,000 is charged. If the return is filed later than December 31, a late filing fees of 10,000 is payable. However amount of late filing fees to be paid cannot exceed 1,000, if total income does not exceed 5 lakh.

Lesser benefits: Apart from paying the penalty, a tax payer will also have to let go of certain exemptions and deductions for that year. The exemptions and deductions which will not be available if ITR is filed late are as below:

  • Exemptions under section 10A​, section 10B to the new establishments are not available
  • Deduction under 80-IA, 80-IAB, 80-IB, 80-IC , 80-ID and 80-IE, in respect of profits and gains from industrial undertakings or enterprises engaged in infrastructure development, are not available
  • Deduction under 80IAC, 80IBA, 80JJA, 80JJAA, 80LA, 80P, 80PA, 80QQB and 80RRB are not available

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