Haven’t filed ITR yet? Get ready to pay THESE penalties for missing Dec 31 deadline

New Delhi: The last date to file Income Tax Returns (ITR) for the assessment year 2020-2021 is December 31, 2021. The Income Tax Department, on Wednesday (December 29), said that so far, more than 5 crore taxpayers have filed ITR for the financial year 2021. 

The department had extended the ITR filing deadline twice, first from July 31 to September 30, 2021, and then from September 30 to December 31, 2021, due to the issues faced by taxpayers due to the pandemic.  

Penalty for missing ITR deadline 

If a taxpayer misses the deadline for filing the income tax returns, a maximum penalty of Rs 10,000 was levied till last year. However, with effect from FY21, the authorities have lowered the fine to Rs 5000. 

Previously, the government allowed taxpayers to file ITRs for up to a year after the deadline with a maximum penalty of up to Rs 10,000. However, from FY21 onwards, the government has reduced the time frame to three months after the deadline along with lowering the maximum penalty to Rs 5,000. 

So, for the assessment year 2020-21, taxpayers missing the December 31 deadline can file ITR till March 31, 2022, with a maximum penalty of Rs 5,000. However, the penalty is imposed on taxpayers earning more than Rs 5 lakh annually. Also Read: 46th GST Council meet on Dec 31: Members to discuss rate rationalisation, textile hike

Taxpayers earning less than Rs 5 lakh in a year could have to pay a penalty of Rs 1,000 for failing to file ITR till December 31, 2021, for the assessment year 2021. On the other hand, salaried individuals with income below the taxable limit won’t have to pay the penalty for failing to file the ITR on time. Also Read: Over 5 crore ITRs filed for FY21: Income Tax Department

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