Filing your ITR late or with wrong information can land you in big trouble with heavy fines. You could be charged up to a 200% penalty on your tax, plus a late fee of up to Rs 5,000.
If you are a salaried employee, you probably know the ITR filing deadline is July 31. It is very important for all employees to file their returns before this date.
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Filing income tax return is not enough
Just filing your income tax return is not the whole story. If you don't file on time, give wrong income details, or ignore tax rules, you might have to pay penalties, interest, and late fees.
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Mistakes can be expensive
You must remember some key things while filing your ITR. Don't delay this task at any cost. Reporting less income can lead to a 50% penalty under Section 270A.
Also, if you knowingly provide wrong information, claim incorrect deductions, or hide some details, you could face a huge penalty. This can be up to 200% of the tax you owe.
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Delay will result in penalty
There is a strict deadline for filing ITR. If you file after the due date, the Income Tax Act's Section 234F imposes a late fee of up to Rs 5,000. However, if your total income is less than Rs 5 lakh, this fee is capped at Rs 1,000.
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Avoid these mistakes too
It's not just one mistake; many others can also lead to fines. For example, filing TDS/TCS returns late can attract a fee of Rs 200 per day. Businesses or professionals who don't maintain proper accounts can be fined up to Rs 25,000.
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File your ITR
If you need a tax audit but fail to get one, you could face a penalty of 0.5% of your turnover, up to a maximum of Rs 1.5 lakh. To avoid this fine, make sure you file your ITR on time.
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Give correct information about income
Always provide correct information about all your sources of income, pay your taxes on time, and keep proper documents and records. This will help you avoid notices from the tax department, extra costs, and legal hassles.
