Due to technical flaws in the income tax portal, you can file your income tax return for this year (FY 2020-21) till December 31. The government has given this deadline due to the frequent flaws in the portal. In such a situation, even if you file your return by December 31, but if the tax has not been deposited, then you will have to pay a penalty. That too on a full 1 percent basis every month.
What is a penalty issue?
Actually, filing income tax return and depositing the tax that is being created on you are two things. To understand this easily, we spoke to CA Mohit Sharma. Mohit explains that according to section 234A of Income Tax, a penalty of 1 percent is imposed on you every month for not depositing the tax liability on time. This penalty will be levied on the same amount as your tax is saved.
understand with an example
if a person’s name Patience Is. Dheeraj’s annual package is of 15 lakhs. Obviously if the package is more, then there will be a tax liability. Let us assume that by adjusting all the investments made by Dheeraj to save tax, Dheeraj has to pay another 50 thousand rupees in tax. But his company has deducted only 30 thousand tax in a year, so now the tax left by endurance is 20 thousand rupees. Now there are three things.
First- Either Dheeraj will wait till December 31 to file his return. But in this case, the tax liability of 20 thousand rupees on you, there will be a penalty at the rate of one percent per month.
Second- To avoid penalty, if he files both his tax and return before 31st September, then he will not have to pay anything extra than 20 thousand.
third- To avoid penalty, if he fills his tax-tax before 31st September, but leaves the return. So even in such a situation, there will be no charge on him and then he can file his return anytime till December 31.
How to deposit tax before filing return?
Suppose there is a tax liability on Dheeraj, but he does not know about it, so how will he avoid the penalty. In this regard, CA Mohit says that before 31st September, all the taxpayers should check the computation slip of their CA or if they file their own tax at once. If someone is liable to tax, then it will be known and tax can be deposited from NSDL’s website on time so that there is no penalty.
Why is the deadline increasing?
Actually, on 7th June this year a new portal of Income Tax was launched. The responsibility of this new portal was given to IT giant Infosys. The portal was launched but technical flaws remained in it. Many people do not get OTP, no one is able to see their old return, many people have tax credit mismatch… etc. Problems are on the portal. To overcome these problems, the Finance Minister herself has held meetings with Infosys officials thrice. At present, the company was given time till September 15, i.e. tomorrow, to remove all the flaws.
When asked whether the portal is running fine or not, Mohit Sharma said that there were a few problems, most of which have been resolved. Now the portal is working properly and taxpayers can file their income tax returns.
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