What is an Income Tax Return?

Income Tax return is a form in which an individual provides information regarding his financial gain earned and tax applicable to the income tax department. The income tax department has circulated seven numerous varieties of income tax that taxpayers need to file an ITR mentioning that income tax block they fall in, until maturity.

Filing your taxation returns brings with it tons of advantages. However, late payments lead to totally different styles of penalties beneath the varied sections of the Income Tax Act. We have compiled each kind of late penalty for not filing ITR applicable beneath totally different sections. Keep reading to grasp that one applies to you and the way can clear Income tax return in Chennai. It is vital to notice that each remunerator ought to pay their tax on or before the required maturity.

Who is eligible to file ITR?

Every individual whose annual gross financial gain is over the fundamental exemption limit laid out in the table below ought to file for ITR.

  • Individuals below sixty years – Rs. 2.5 Lakh
  • Individuals above sixty years and below eighty years – Rs. 3 Lakh
  • Individuals above eighty years – Rs. 5 Lakh

Penalty for late filing of tax return

If the tax return isn’t filed before the due date of filing of tax return i.e. before thirty first July/31st Sept (as the case might be), an unpunctual return underneath Section 139(4) will be filed at any time before the end of the relevant assessment year.

The penalty levied for late filing of tax come is as follows:

  • If ITR filed after due date however before 31st Dec – Rs. 5,000
  • If ITR filed after 1st Dec however before 31st March – Rs. 10,000

This penalty as mentioned above would need to be paid before the filing of the tax return. Just in case the penalty isn’t paid before filing ITR, the ITR won’t get accepted.

In extreme cases, whenever the payer willfully fails to furnish the return in due time, can also levy penalty underneath Section 276CC i.e.

  1. If The tax is < Rs. 25,00,000 – the tax officer might penalize the taxpayer with imprisonment for a term of three months to 2 years.
  2. In any case, whenever the tax exceeds Rs.25,00,000 – the tax officer might penalize the taxpayer with imprisonment for a term of six months to seven years.

However, in a very rare case these penalties are levied. In most of the cases, the payer is merely needed to pay interest at 1% for late deposit of tax, says a Tax Consultant in Chennai.

Consequences for late filing of tax return

Apart from penalty which might be levied for late filing of ITR, there are many alternative drawbacks for lately filing of tax return that are mentioned below:-

  • Loss of Interest on Refund: If a refund is because of a payer, interest on such refund won’t be acquired for the period of delay in filing of income tax refund.
  • Revision of unpunctual return not possible: If the tax return has been filed on the due date, such return can not be revised by the payer himself just in case of any error.
  • Some Deductions underneath Section 80 don’t seem to be out there just in case lately filing of tax returns.
  • If the tax return isn’t filed before the maturity date, the payer won’t be allowed to hold forward losses arising underneath varied heads except loss underneath head House Property and unabsorbed depreciation

Penalties based on the Section-wise:

Refer to the subsequent table to grasp concerning the various styles of charges you may face betting on the conditions lately ITR filing.

SectionsOffensive naturePenalty Levied
Section 234FFiling ITR past the given day of the monthRs.5000 if ITR is reported before thirty first December of the AY.  Rs.10,000 if ITR is reported after thirty first December however before thirty first March of the AY.
Section 234AA person fails to file ITR at intervals the day of the month and has an incomplete unpaid taxInterest on the outstanding tax quantity at 1% per month since the mentioned due date.
Section 271HFailure to file TDS and TCS returns within the mentioned due date.Rs.10,000-Rs.1,00,000, besides the late filing penalty beneath Section 234E, that is Rs.200/day until the TDS/TCS is paid
Section 270AA person with ratable financial gain fails to file his ITR or is found to under-report his financial gain within the returns50% of the full tax owed on the financial gain that no return was volume

What is the taxpayer-wise penalty for late or non-filing of taxation returns?

Here is a list of the classes of taxpayers and their penalties for not filing taxation returns within the due date:

  • Salaried individuals: Here, three classes of people are thought-about.
    • Total annual financial gain below Rs.2.5 lakhs: No penalty (No ITR penalty for zero return)
    • Total annual financial gain below Rs. 5 lakhs: most penalty cannot exceed Rs.1,000
    • Total annual financial gain higher than Rs.5 lakhs: Up to Rs.10,000
  • Companies: Up to Rs.10, 000
  • Self-employed individuals: Up to Rs.10, 000
  • Senior voters: The aforesaid penalty for not filing ITR beneath Section 234F is simply applicable to senior citizens meeting the subsequent criteria.
  • Aged between 60-80 years with a complete annual financial gain of over Rs.3 lakhs.
  • Aged higher than eighty years with a complete annual financial gain of over Rs.5 lakhs.

Now, there are plenty of people with gross annual salaries not more than the ratable limit. If you’re one amongst them, you may be thinking how a penalty for late ITR filing might have an effect on you. Our Phoenixtax- Tax Consultant in Chennai have got the solution for that still.

Taxpayers who need to file ITR despite of not having a taxable income

Generally, the taxation department doesn’t levy any penalty of non-filing of ITR upon people and organizations with total gross financial gain below the exemption limit. However, the Union Budget 2019 introduced amendments within the taxation Act effective from AY 2020-21, that mandates ITR filing for taxpayers meeting the subsequent conditions despite not having a ratable financial gain.

  • Those who have created expenditure towards electricity consumption exceeding Rs.1, 00,000.
  • Individuals with expenses over Rs.2,00,000 on foreign travel
  • Those who have a complete deposit of over Rs.1,00,00,000 in one or multiple current accounts with a bank
  • Those who are Indian residents however have financial gain from foreign assets.

If you happen to fulfill any of those or alternative conditions enclosed within the latest change of the taxation Act, you will have to pay the prescribed penalty for non-filing of ITR. As already mentioned, this is applicable even to those that don’t have a ratable gross financial gain.

Now that you just apprehend that conditions cause you to be vulnerable to file ITR, you want to conjointly apprehend the method to pay the penalty if you haven’t filed your returns within the due date.

How to pay the ITR penalty?

You can clear your late ITR filing penalty each via on-line and offline processes. Here is the method to clear your penalty for not filing the taxation return.

Online method

Step 1: Visit the official taxation e-filing portal.

Step 2: click “e-Pay Tax”.

Step 3: You will see a replacement window displaying the message that you just got redirected to the NSDL website to continue the payment. Click on “Continue to NSDL website.”

Step 4: Currently, you will be redirected to a replacement page on the web site of NSDL, displaying multiple Challan choices beneath “NON-TDS/TCS.” Click on “Proceed” beneath “CHALLAN NO. /ITNS 280.”

Step 5: Successive page can show the form you would like to stock up for payment.

Step 6: If you are paying the penalty for not filing ITR as a personal payer, opt for “taxation (Other than Companies)” for “Tax Applicable.” Next, choose “Self-Assessment Tax” beneath payment type and scroll down.

Step 7: Currently, select from the payment modes of “Net Banking” and “Debit Card.” In either case, choose the bank from the menu. Enter your account number and choose the right assessment year.

Step 8: Next, fill in the necessary fields, hit “Proceed” after entering the given security code.

Step 9: Successive screens can show your filled-in challan with all entered details. See to it there’s no wrong data provided. Then, scroll down and click on “Edit” if you would like to make any changes. Or else, click on “Submit to the Bank.”

Step 10: You will be redirected to the payment page of your designated bank, where you need to register using account details.

Step 11: On successive page, you have got to enter the penalty amount within the boxes like “Others.” This is often as a result of there’s no selected box for payment of the ITR penalty on the due date. Just in case you would like to pay outstanding tax alongside a fine, enter the amount in the box beside “Tax.” Then, click on “Confirm.”

After finishing this method, the taxation department can deduct the specified fine directly from your provided account and issue a receipt. Thus, it ends the web procedure to pay the penalty on late filing of ITR.

Offline method

You can also pay your ITR late fee offline by the following steps.

Step 1: Head to the official web site of taxation India.

Step 2: Choose “Forms/Downloads” from the top menu on the home page. Click on “Challans” from the menu.

Step 3: On successive pages, you will get an inventory of downloadable challans. Click on any of the choices from “PDF” and “Fillable Form” beside “ITNS-280,” betting on your suitableness.

Step 4: The form can be downloaded.

If you are unable to download it, you can also get this form from your nearest bank branch. Fill this form with correct details. Next, submit the form alongside the specified penalty amount at the counter of a relevant bank. You can make payment via money or cheque and collect the receipt. This challan receipt acts as an acknowledgement of payment and might be used later for challan verification. Not having this document causes you to be unable to prove that your fine has been paid and might cause serious consequences later.

Benefits of filing ITR on time

Filing your ITR on time will cause you to feel accountable and sensible concerning yourself, however the advantages don’t finish there. Filing your ITR on time will profit you in additional ways:

Easy empowerment

Filing the ITR can facilitate people once they have to be compelled to apply for a vehicle loan (2-wheeler or 4-wheeler), House Loan etc.

Claim Tax Refund

If you have got a refund due from the taxation Department, you can file your taxation return on time to receive the refund as early as possible.

Income & Address Proof

Income Tax returns are often used as an indication of your financial gain and Address – obligatory after you apply for a loan or visa.

Quick Visa process

Most embassies & consulates need you to furnish copies of your tax returns for the past number of years at the time of the visa application.

Carry Forward Your Losses

If you file the taxation return within the date, you may be ready to shift losses to sequent years..


Now that we are clear with the fundamentals of the penalty for late filing of ITR. As much as filing Income Tax returns might sound sort of a tedious job, it’s also necessary to be up-to-date in mind its importance within the realm of taxation, claiming refunds, and filing. A lot of individuals forget to file their due income tax returns and as a result miss out on the maturity date. There also are times once individuals simply don’t need to speculate that sort of energy into financial gain saving and documentation that’s hefty in nature. If still this finds to be a tedious task, Our Tax Consultants in Chennai will be glad to sort this for you.