Penalty For Late Filing of ITR for AY 2020-21

For AY 2020-21, the last date for filing your Income Tax Return is 31st December 2020 for the non-audited assessee, and for the audited assessee, the last date is 31st January 2021. Still, if you did not file your Income Tax Return in time then the Income Tax Department will penalize you and imposed a Penalty for late filing of ITR.

Due Date of Income-tax Return for AY 2020-21

For the assessment year 2020-21, the due date for Income Tax Returns are as follow-

ParticularsYear/MonthOriginal Due dateExtended Due date
Income Tax Return- Non Audited assesseeFY 2019-20
(AY 2020-21)
Income Tax Return- Audited assesseeFY 2019-20
(AY 2020-21)

On 30th December 2020, Due to the COVID-19 pandemic, the original due dates have been extended as mentioned in the chart above.

Interest and Penalty for late filing of ITR

If the assessee not filed their Income Tax Return in the given time then the interest and penalty for late filing of ITR will be as follow-

Penalty for Late Filing of ITR- Section 234F

According to the rules amended by the department, section 234 comes into effect from 1st April 2017, which imposed a penalty of up to Rs. 10,000/-, and the provision of this section shall apply in respect of return of income required to be furnished for the assessment year commencing on or after the day 1st day of April 2018.

Also Read- List of Documents required for filing Income Tax Return

Section 234F. Fee for default in the furnishing of return of Income- As per this section, where a person required to submit a return of Income Tax under section 139, fails to do so within the time prescribes in subsection (1) of said section, he shall be liable to pay penalty as under. (Source)

Chart for Late filing fee imposed u/s 234F

E- Filing DateTotal Income below Rs. 5,00,000Total Income above Rs. 5,00,000
10th January 2021 (Non-audited assessee)Rs. 0Rs. 0
15th February 2021 (Audited assessee)Rs. 0Rs. 0
Between 10th Jan 2021 to 31st March 2021 (Non-audited assessee)Rs. 1,000Rs. 10,000
Between 15th Feb 2021 to 31st March 2021 (Audited assessee)Rs. 1,000Rs. 10,000
Penalty For Late Filing of ITR For AY 2020-21

Interest for Late Filing of ITR for AY 2020-21 Section 234A

Apart from the penalty for late filing of ITR, if the assessee has not filed the Income-tax Return before the due date, then he is also liable for Interest u/s 234A of the Income Tax Act.

Section 234A- Income Tax Act had made a provision of Interest payment for the late filing of Income Tax Return. Interest u/s 234A is calculated @ 1% for every month or part of the month on the amount of tax payable. This interest is calculated from the due date to the date of the actual filing of the Income Tax Return.

234A Interest Calculation- For the Interest calculation under section 234A, we can understand it with an example.

Read Full Article Here- Interest calculation under Section 234A, 234B, and 234C of Income Tax Act, 1961

Example for Interest under section 234A

Mr. Kiyaan has failed to file his Income Tax Return on which the tax payable was Rs. 2,00,000. The due date was 31st July 2019 and he submits its Income Tax Return on 2nd December 2019. The Interest calculation will be as follow-

Tax Payable- Rs. 2,00,000.

Delay in filing of Return- From 31st July to 2nd December i.e 5 Months

Interest under section 234A- 2,00,000*1%*5= Rs. 10,000.

Also Read-

🎯 Interest and penalty for late filing of ITR for AY 2021-22

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Disclaimer: The information contained in the above article are solely for informational purpose after exercising due care. However, it does not constitute professional advice or a formal recommendation. The author does not own any responsibility for any loss or damage caused to any person, directly or indirectly, for any action taken on the basis of the above article.

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Compiled by- CA Chirag Agarwal (Practicing Chartered Accountants)

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