You are now allowed to file FY20 income tax return upto Dec 31
Also, the deadline for those who are required to get their ITR audited has been extended to January 31, 2021
The income tax return (ITR) filing deadline for FY 2019-20 has been again extended to December 31, 2020, for most individual taxpayers, from the earlier deadline of November 30, 2020. This is the second time the tax filing deadline for FY20 has been extended.
The government had already extended the deadline for filing the return to November 30 from July 31 earlier.
The Central Board of Direct Taxes (CBDT) has extended the deadline for those who are required to get their ITR audited to January 31, 2021 now from October 31, 2020, earlier.
Do note that the due date for payment of self-assessment tax for taxpayers whose self-assessment tax liability is up to Rs 1 lakh has been extended to 31st January, 2021 for the taxpayers whose accounts are required to be audited and to 31st December, 2020 for the taxpayers whose accounts are not required to be audited.
It is recommended that you file your tax return before the due date to avoid paying late payment fees and penalties.
What happens in case of delay in filing?
Delaying the ITR filing beyond December 31 deadline will attract a penalty of up to Rs 10,000. A simple interest at 1% per month is also charged in case of a delay.
Some exemptions and deductions under Section 80 and Section 10 will also have to be foregone in case of delay in filing the return beyond December 31.
Also, delay in filing ITR brings some disadvantages apart from fine. For instance, a delay in filing ITR translates to delay in claiming tax refunds. Simply put, taxpayers who are expecting refunds should file early for their refunds to be processed earlier. ITR filings that are done earlier get verified earlier, thus resulting in a scope for faster tax refunds.