Last updated: March 27th, 2024 10:47 AM

Income Tax Return

All persons including individual, HUF, firm, LLP, company or trust have to file an income tax return if the total income during the financial year has exceeded the maximum amount which is not chargeable to income tax, in other words, the basic exemption limit. In this article, we look at some of the major FAQs on income tax returns.

What is the due date for filing returns?

For taxpayers who do not require a tax audit the due date for filing income tax return is the 31st of July, every year. In case of a company or an assessee requiring tax audit under Income Tax, the due date for filing an income tax return is 30th of September. For the assessees who have entered into the international transaction or specified domestic transaction, the due date for filing an income tax return is the 30th November of every assessment year.

Latest Update on the Pay Later Option for Income Tax Filing

The Income Tax e-filing portal has recently rolled out a 'Pay Later' option, allowing you to complete your tax filing process before making any tax payments. You can pay taxes after you are done filing. For additional information, please refer to our guide – Pay later option for the Income tax return filing.

What is the penalty for not filing an income tax return?

In case a taxpayer fails to file an income tax return before the due date, a penalty of upto Rs.5,000 can be levied by the assessing officer. Further, the assessee would be liable to pay interest, if the tax amount due is not deposited on time. Finally, certain income tax deductions normally eligible for taxpayers would be made unavailable for late filers. Hence, to save on income tax, its important to plan and file income tax return well in advance along with payment of taxes.

What is the rate of interest for delayed income tax payment?

Penal interest for delayed income tax filing is applied at 1% per month. The period for which the interest is payable will commence immediately after the due date and will be carried till the day income tax return is filed with payment of taxes due. In order to ensure the taxes are paid within the due date, a new section 234F has been inserted to the Income Tax Act. Under the new provisions, an assessee who fails to file the return of income before the due date would have to pay an additional amount of Rs 5000 as a penalty, even if the income tax return is filed before 31st December of the same assessment year. An exception in the new provisions is available for assessees who do not earn more than Rs 5,00,000. For such taxpayers, the penalty has been capped at Rs.1000.

Do trusts and charitable organisations have to file an income tax return?

Every person who is in receipt of income for which he is taxable must file an income tax return if it exceeds the maximum amount not chargeable to tax. Hence, Trusts and not-for-profit organisations would also have to file an income tax return each year. The requirement to file an income tax return will be applicable even if the income earned by the trust is availing of an exemption under Section 11 of the Act.