Income Tax Return(ITR) Filing FY 2023-24: As the deadline for filing income tax return for the assessment year 2024-25 approaches, it is imperative that you file your tax return on time. Any delay in filing your ITR beyond the due date can cost you a penalty.
Also, in case you have a tax liability exceeding a certain amount at the time of ITR filing, then there is an interest penalty on the amount due for each month of delay.It is also important to keep in mind transactions that require you to cut TDS, in order to avoid penalties.
We take a look at some common tax return filing penalties that you should avoid, as listed by ET Wealth.
Also, in case you have a tax liability exceeding a certain amount at the time of ITR filing, then there is an interest penalty on the amount due for each month of delay.It is also important to keep in mind transactions that require you to cut TDS, in order to avoid penalties.
We take a look at some common tax return filing penalties that you should avoid, as listed by ET Wealth.
Late Filing of Income Tax Return:
- There is a penalty of Rs 5,000 if you file your income tax return after the due date. The due date for filing income tax returns is July 31, 2024.
- Also, if the tax liability is more than Rs 10,000, then there is a 1% interest on your tax liability which is charged each proceeding month of delay
- There is a penalty of Rs 10,000 if you have provided an incorrect PAN number
TDS-related penalties:
- There is a 1% interest for every month of delay if TDS (tax deducted at source) is not deducted on purchase of property worth more than Rs 50 lakh
- In case the TDS has been deducted, but not deposited with the government, then the penalty is higher at 1.5% per month, from the date of deduction
Some other tax penalties:
- 100% of the amount received in cash if you receive a single cash payment exceeding Rs 2 lakh
- 100%-300% of tax evaded if you conceal income; possibility of being sent to jail for up to 6 months if amount of tax evaded exceeds Rs 25 lakh
- The highest amount amongst 0.5% of total sales, that of gross receipts, or Rs 1.5 lakh if the taxpayer is required to get their account audited but fails to do so