Here to find out
What is the penalty for missing ITR filing deadline?.) However, there are some individuals who can file their ITR without any penalty even after the deadline for filing ITR is over.
Let’s take a look at who will not face penal consequences for missing the ITR filing deadline.
Who will not have to pay the penalty?
As per income tax laws, not everyone needs to pay late fee for filing ITR after the deadline is over. If a person whose gross total income does not exceed the basic exemption limit, files delayed ITR, he will not be liable to pay penalty for late filing.
“If the gross total income does not exceed the basic exemption limit, no late fee as mentioned under section 234F will be levied on ITR filed after the deadline. The gross total income mentioned in section 139(1) refers to an ITR filing “Total income taking into account deduction u/s 80C to 80U under the Act,” says Abhishek Soni, CEO, website tax2win.in.
As per the current tax laws, the basic tax exemption limit applicable to an individual depends on the tax regime chosen by him. If a person opts for the new tax regime, the basic exemption limit will be Rs 2.5 lakh, irrespective of his age.
However, if a person opts for the old tax regime, the basic exemption limit depends on the age of the individual. At present, the basic exemption limit for resident individuals below 60 years of age is Rs 2.5 lakh. For senior citizens 60 years and above but below 80 years of age, income up to Rs 3 lakh is exempt from tax. For super senior citizens (those above 80 years of age), the basic exemption limit is up to Rs 5 lakh.
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exceptions to the above rule
However, there are two exceptions to the above rule. The first exception to the rule is mandatory for certain classes of individuals to file ITR even if their gross total income does not exceed the basic exemption limit.
Shalini Jain, Tax Partner, People Advisory Services, EY India says, “If a person fulfills any of the conditions mentioned in the seventh provision of section 139(1), he will have to compulsorily file ITR for the financial year 2021-22. will have to be filed, failing which a fee under section 234F will be levied.”
The persons covered by the seventh proviso to section 139(1) are as follows:
a) who has deposited in one or more current accounts maintained with a banking company or a co-operative bank an amount or aggregate amount exceeding one crore rupees; either
b) who has incurred for himself or any other person an amount or an aggregate amount exceeding rupees two lakhs for travel to any foreign country; either
c) who has spent an amount or aggregate amount exceeding one lakh rupees for the consumption of electricity or;
d) which satisfy such other conditions as may be prescribed.
So, if you need to mandatorily file ITR because of any of the conditions mentioned above, ensure that you have filed your tax return before the deadline or else your gross total income is below the taxable limit. Late fee will also be levied.
The second exception is if you hold foreign assets, such as the stock of a foreign company. If you are an ordinary resident individual with income from foreign assets and your taxable income is below the threshold, you will have to pay a penalty if you do not file ITR before the deadline.
“As per the fourth provision of section 139(1), if you are a resident individual (not ordinarily resident within the meaning of section 6(6) of the Act), hold any property (including any financial interest) outside India such as the stock of a foreign company, as a beneficial owner or you are the beneficiary of any property or have the right to sign any account located outside India, you must mandatorily pay income tax before the due date. The return has to be filed even if the total income is below the taxable limit. In such cases, if you file your ITR after the deadline, late filing charges will be levied as per the provisions of the law,” says Jain.