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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.
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
