For the financial year 2020 to 2021, the time limit to file ITR (income tax return) is September 30th, 2021 (it expanded from the typical time limit of July 31st, 2021 owing to the Coronavirus). Till the previous year, if a levy payer missed the ITR filing time limit, the greatest Penalty they would have had to disburse was Rs ten thousand.

1. Reduced Penalty for late filing
of Income Tax
F o r t h e f i n a n c i a l y e a r 2 0 2 0 t o 2 0 2 1 , t h e t i m e l i m i t t o f i l e I T R ( i n c o m e t a x r e t u r n )
i s S e p t e m b e r 3 0 t h , 2 0 2 1 ( i t e x p a n d e d f r o m t h e t y p i c a l t i m e l i m i t o f J u l y 3 1 s t ,
2 0 2 1 o w i n g t o t h e C o r o n a v i r u s ) . T i l l t h e p r e v i o u s y e a r , i f a l e v y p a y e r m i s s e d t h e
I T R f i l i n g t i m e l i m i t , t h e g r e a t e s t P e n a l t y t h e y w o u l d h a v e h a d t o d i s b u r s e w a s
R s t e n t h o u s a n d .
N o n e t h e l e s s , w i t h e f f e c t f r o m F Y 2 0 2 0 t o 2 0 2 1 , t h e a m o u n t o f P e n a l t y h a s b e e n
l e s s e n e d b y h a l f ; t h a t i s , a n i n d i v i d u a l f i l i n g d e l a y e d I T R w o u l d h a v e t o d i s b u r s e
a p e n a l t y o f u p t o R s f i v e t h o u s a n d . F u r t h e r m o r e , i f y o u r w a g e s a r e u n d e r t h e
c h a r g e a b l e l i m i t , y o u w o u l d n o t s t i l l h a v e t o s p e n d t h e p e n a l t y s u m i f y o u f i l e
y o u r I T R l a t e r t h a n t h e t i m e l i m i t s u b j e c t t o a s s u r e d e x c e p t i o n s . T h i s a r t i c l e
d e m o n s t r a t e s R e d u c e d P e n a l t y f o r l a t e f i l i n g o f i n c o m e t a x i n d e t a i l .
The Reduced Penalty for late filing of Income Tax
for FY 2020-21
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2. I n f i n a n c i a l p l a n 2 0 2 1 , a d m i n i s t r a t i o n l e s s e n e d t h e m a x i m u m p e r i o d f o r a p e r s o n
( w h o s e f i n a n c i a l r e c o r d s a r e n o t n e c e s s a r y t o b e a u d i t ) f o r I T R f i l e b y t h r e e
m o n t h s . D u e t o t h e l e s s e n i n g i n t h e I n c o m e T a x R e t u r n f i l i n g d e a d l i n e , a
s i g n i f i c a n t a l t e r a t i o n w a s c r e a t e d i n S e c t i o n 2 3 4 F o f t h e I n c o m e - l e v y a c t .
U n d e r 1 9 6 1 t h e p u n i t i v e s u m f o r f i l e d e l a y e d I T R w a s l e s s e n e d t o t h e g r e a t e s t o f
R s 5 , 0 0 0 t o R s 1 0 , 0 0 0 p r e v i o u s l y .
P r e v i o u s l y , a p e r s o n w a s p e r m i t t e d u n t i l t h e e n d o f t h e f i n a n c i a l y e a r , t h a t i s ,
M a r c h 3 1 s t , t o f i l e b e l a t e d I T R b y p a y i n g t h e h i g h e s t P e n a l t y o f u p t o R s t e n
t h o u s a n d .
A c c o r d i n g t o t h i s , f o r F Y 2 0 2 0 t o 2 0 2 1 , t h e t i m e l i m i t f o r f i l i n g b e l a t e d I T R w a s
D e c e m b e r 3 1 s t , 2 0 2 1 . H o w e v e r , i t h a s b e e n e x p a n d e d t o J a n u a r y 3 1 s t , 2 0 2 2 ,
o w i n g t o t h e p a n d e m i c . A s d e c l a r e d a b o v e , a p e r s o n f i l i n g d e l a y e d I T R b y t h e
t i m e l i m i t o f J a n u a r y 3 1 s t , 2 0 2 2 , w o u l d h a v e t o d i s b u r s e t h e g r e a t e s t P e n a l t y o f
R s f i v e t h o u s a n d .
I f t h e d e l a y e d I T R w a s f i l e d l a t e r t h a n t h e e x p i r a t i o n o f t h e t i m e l i m i t a n d o n o r
p r e v i o u s t o D e c e m b e r 3 1 s t , t h e n t h e p e r s o n w a s r e q u i r e d t o p a y a l a t e f i l i n g
c h a r g e o f R s f i v e t h o u s a n d . I f t h e I n c o m e - t a x r e t u r n i s f i l e d b e t w e e n J a n u a r y 1 s t
a n d M a r c h 3 1 s t , t h e n a b e l a t e d l y f i l i n g a m o u n t o f R s t e n t h o u s a n d i s t a x e d .
O n t h e o t h e r h a n d , t h e r e i s n o m o d i f i c a t i o n i n s i d e t h e p e n a l a m o u n t t a x e d o n
t i n y t a x p a y e r s w h o m i s s t h e I n c o m e - t a x r e t u r n s u b m i t t i n g t i m e l i m i t .
C l i c k h e r e t o l e a r n m o r e a b o u t Reduced Penalty for late filing of Income Tax
I f y o u w a n t a n y o t h e r g u i d a n c e r e l a t i n g t o t h e Income Tax Return Filing,
p l e a s e f e e l f r e e t o t a l k t o o u r b u s i n e s s a d v i s o r s a t 8881-069-069.
D o w n l o a d E-Startup Mobile App a n d N e v e r m i s s t h e l a t e s t u p d a t e s n a r r a t i n g
t o y o u r b u s i n e s s .
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