Income Tax for Individual

An Income Tax Return is mandatorily required to be filed if the Total Income is more than the minimum amount which is exempted from the levy of tax. In other words, it is  compulsory to file an Income Tax Return in case tax is payable on your income.

Although ITR is not required to be filed when there is no tax payable, you may still receive a notice for non filing of ITR even if you were not required to file your ITR. This article focuses on such cases wherein you may receive a notice for non-filing of ITR.

Compliance : Income Tax Return filing

This notice is sent to people by the Income Tax Dept if they think that the person has some taxable income but the ITR has not been filed for such income. The Income Tax Dept collects information through various sources and then based on their own analysis send notices to people who have carried out specified transactions.

If you have received this notice you should not panic. However, you should also not ignore this notice.

You are only required to reply to the govt the reason why you didn’t file your ITR. 

Penality for NON Compliance of ITR

Individuals with income exceeding more than the basic exemption limit are required to file Income Tax Return within the due date and if the person fails or misses the due date then there are the certain provisions of penalty under the Income Tax Act, 1961. The assessing officer may contact the individual through a notice to furnish reasons for not filing the return within due date.

Not filing the return within due date may lead to levy of penalty upto INR 10,000.

It was a well-known fact that the last date to file your ITR for the Financial Year 2019-20 was 31 July 2020 extended to 30 Nov 20 due to COVID-19. And Not filing your ITR on time can prompt a penalty, but there are additional consequences and inconveniences with the delay and penalties, and today we are exploring the same here:

Penalty for Late Filing Income Tax Return u/s 234F

As per the modified rules notified under section 234F of the Income Tax Act that is already in action from 1 April 2017, filing your ITR after the due date, can make you liable to pay a maximum penalty of ₹ 10,000.

Let’s understand it more clearly if you file ITR after 30 Nov but before December of this year (2020), you will be liable to pay a penalty of ₹ 5,000. If ITR filed after December 2020 then the penalty farthest will be expanded to ₹ 10,000.

There is also a great relief for small taxpayers that the IT department has stated that if the total income is not more than ₹ 5 lakh then the maximum penalty for delay will only be ₹ 1000.

Late Income Tax Filing Fee Details
E- Filing Date Total income upto ₹ 5,00,000 Total income ₹ 5,00,000 & above
30 Nov 2020 ₹ 0 ₹ 0
From 1st Dec 2020 to 31st Dec 2020 ₹ 1,000 ₹ 5,000
From 1st Jan 2021 to 31st March 2021 ₹ 1,000 ₹ 10,000
Common mistakes during filing ITR:
As per the Income Tax Act, below are entities or firms that require mandatory filing of ITRs in India:

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