The Ministry of Finance, by issuing an order dated 26th July, 2018, has extended due date for filing income tax return from 31st July, 2018 to 31st August, 2018.
Until last assessment year (AY) there was no penalty for filing belated income tax returns. However, this penalty is applicable from AY 2018-19. A new section 234F was inserted by the government in the Income Tax Act. As per this section, an individual would have to pay a fee of up to Rs 10,000 for filing income tax return after the due dates specified in section 139(1) of the Act.
Tax experts say that as per the amendments made in the Finance Act 2017, taxpayers are liable to pay a fee of Rs 5,000, if their tax return for the financial year 2017-18 is filed after the return filing deadline but before December 31, 2018. The fee payable will increase to Rs 10,000, if the tax return is filed on or after January 1, 2019. However, if the total income of the taxpayer is less than Rs 5,00,000, the fee amount shall not exceed Rs 1,000.
It is to be noted that, although the due date is extended, those who have taxes to pay should pay before July 31 to save additional one month interest under section 234B.
The copy of order can be accessed below.
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