The deadline on September 30, 2020 is for both revised and belated ITR. Belated ITR is the one filed after the due date, which is generally July 31 of any assessment year. For FY19, the due date of filing ITR was August 31 and the assessment year FY20. In case you want to make a change or correction in your original return filed for FY19, you can have the option of filing a revised return.
Given below are things you need to keep in mind while filing the ITR:
- Not filing ITR for FY19: In case you don’t file belated ITR within the due dates, the tax department can send a notice. There is no indication that the tax department would extend the deadline as it has done 3 times this year in the wake of the covid-19-induced lockdown. If the deadline is not extended, it may be your last chance to file the tax return for FY19 as the tax the department doesn’t allow the filing of tax return after the due date. There is a lengthy process to file a return after the due date and is generally allowed only in special circumstances.
- Refunds will be delayed: In case you have a refund due, they will be delayed as the processing of refunds will only start after you have filed the tax return. The tax department pays interest on refunds from the date of filing of return in case of late returns. So, in case you delay filing the belated return, you will lose on the interest payment on your tax refund, if any.
- Penalty and interest: In case the taxpayer misses the ITR due date, a flat penalty of Rs5,000 will be levied when you file belated returns till December 31, and Rs10,000 if you file after December 31 till March 31. For small taxpayers with income up to Rs5 lakh, a penalty of Rs1,000 is applicable in case of filing belated ITR till March 31. Even if you file the belated return for FY19 by September, you will have to pay a late filing penalty of Rs10,000. In case you had any tax dues while filing belated ITR, you will have to pay interest on the outstanding amount at 1% for each month of delay starting September 01, 2019. Also, if you are liable to pay any advance tax, you will have to pay interest on the delay or default on advance tax payment under the respective sections of the Income-tax Act, 1961.
- Form16: Form 16 is a certificate issued by an employer and it contains the information you need to prepare and file your income tax return. Form 16 has two components – Part A and Part B. Form 16 consists of 2 parts 'Part A' and 'Part B'. Part A is the portion that consists of the income tax deducted by the employer in the financial year. It has the Permanent Account Number (PAN) details of the employee and the Tax Deduction Account Number (TAN) of the employer. Part B of Form 16 includes the break-up information of the employee’s gross salary.
- Form 26AS: Form 26AS is a summary of taxes deducted on your behalf and taxes paid by you. This is provided by the Income Tax Department. Using PAN, all taxpayers can easily access it from the income-tax website.
- Tax saving investments: Contribution to PPF, contribution to ELSS, Life insurance premium payment, rent payment, EMIs on your home loan, etc. upto Rs1.5lakh can be claimed under section 80C.
- Medical insurance: You can claim up to Rs25,000 under Section 80D for payment of health insurance premiums. These insurance policies could be for yourself, your spouse or your children. In case of senior citizens, the limit is Rs50,000.
- Bank interest: Section 80 TTA of the Income Tax Act allows you to claim deductions of up to Rs10,000 every year on the interest earned on your savings bank account, bank FDs, recurring deposits and any other time deposit with the bank.