Good News! Taxpayers Don’t Have To Pay Interest Rate And Penalty On Missing ITR Deadline

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Good News! Taxpayers Don't Have To Pay Interest Rate And Penalty On Missing ITR Deadline

If the person with gross income not exceeding the basic exemption limit files a belated return then no penalty is to be paid for late filing. So, for such taxpayers, the otherwise charged late filing fees under section 234F will not be levied. As per section 139(1), gross total income is the total income before considering deductions specified under section 80C to 80U under the Act. As for the basic exemption limit, it shall depend on the tax regime chosen, so if the assess has chosen new tax regime then the basic exemption limit shall be Rs. 2.5 lakh irrespective of his or her age. Nonetheless, if the individual chooses old tax regime then the basic exemption limit depends on the person’s age. Currently, the basic exemption limit for resident individuals below the age of 60 years is Rs 2.5 lakh. For senior citizens aged 60 years but less than 80 years is Rs. 3 lakhs while for the super senior citizen is more than 80 years is up to Rs. 5 lakh. But there is an exception here as per which in case the taxpayer falls in any of the criteria specified in the seventh proviso to Section 139(1), then the tax assess has to mandatorily file ITR for FY 2021-22, failing which the fee under section 234F would be levied.

As per the ruling these are those persons who have:

  • Deposited an amount more than Rs. 1 crore in one or more current accounts with a banking entity.
  • Have spent an amount or aggregate of the amount of more than Rs. 2 lakh for himself or any other person on travel. Have paid an electricity bill of more than Rs. 1 lakh in a fiscal year.
  • Have fulfilled such other condition as may be specified. So, upon meeting any of the criteria above you mandatorily need to file the return by the due date or else penalty shall be levied.

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