The Income Tax department has made a big announcement for all the taxpayers in India. They are providing relaxation to all those who missed or could not submit the Income Tax return form for the assessment year 2020-21.
The announcement was made in view of pending e-verification in large numbers, said the Central Board of Direct Taxes (CBDT). The extended time period will give sufficient time to taxpayers in resolving this issue.
In the meantime, such taxpayers can digitally verify the ITR-V form within 120 days of filing the Income Tax return. Taxpayers will have to log in to the Income Tax e-filling portal and verify it through Aadhaar. A physical copy of the same is required to be posted at the Bengaluru center of the Income Tax Department.
Income Tax Return Deadline 2021
31st July 2021 was the due date for filing ITR this year which was later extended to 31st December 2021. If someone misses the due date they still have time to file an Income Tax return by 31st March 2022.
However, if they fail to complete the procedure by the due date i.e. 31st December 2021 then no losses will be carried forward. This will also include the interest benefits on the excess of paid taxes for that period.
Other than these, a penalty of Rs 5,000 is applicable on those filing tax returns after the due date if their income is above Rs 5 lakhs. In case the income is less than the mentioned bar, a penalty of Rs 1000 will be applicable.
Taxpayers who miss the last date as well i.e. 31st March 2022 will be a bigger loss as they have to pay a penalty of half of the amount paid as tax.