ITR Filing Penalty: Check Taxpayers Exempt from Paying a Late Fee even Missing the Deadline

For the financial year 2021-22 (AY 2022-23), the deadline for filing an income tax return (ITR) is July 31, 2022. If the ITR filing deadline is missed, the taxpayer must pay a penalty when filing a belated ITR. However, certain individuals can file their ITR without paying a penalty even after the ITR filing deadline has passed.

Let’s take a look at who will not face penalties for missing the ITR filing deadline.

Who will be exempt from paying the penalty even if they miss the deadline?

According to income tax laws, not everyone is required to pay a late filing fee for filing an ITR after the deadline has passed. If a person files a late ITR and his or her gross total income does not exceed the basic exemption limit, he or she will not be penalized.

“There will be no late filing fees levied on ITRs filed after the deadline if the gross total income does not exceed the basic exemption limit, as specified in section 234F. The term “gross total income,” as defined in section 139(1), refers to total income before deductions under sections 80C to 80U of the Income Tax Act

The basic tax exemption limit applicable to an individual under current tax laws is determined by the tax regime chosen by him/her. If an individual chooses the new tax regime, the basic exemption limit will be Rs 2.5 lakh, regardless of age.

However, if a person chooses the old tax regime, the basic exemption limit is determined by the person’s age. Currently, the basic exemption limit for residents under the age of 60 is Rs 2.5 lakh. Income up to Rs 3 lakh is tax-free for senior citizens aged 60 and above but under the age of 80. The basic exemption limit for super senior citizens (those over the age of 80) is Rs 5 lakh.

What if ITR Filing Due Date Falls on Weekend? Will Same stand extended to Monday?

Exceptions to the preceding rule:

There are two exceptions to the preceding rule.

• The first exception to the rule is the requirement for certain individuals to file ITR even if their gross total income does not exceed the basic exemption limit.

If a person satisfies any condition mentioned in the seventh proviso to Section 139(1), then he/she has to mandatorily file ITR for FY 2021-22, failing which the fee under Section 234F would be levied.

[Breaking] New ITR Filing Conditions notified by CBDT on 21.04.2022; Read Notification

Individuals who fall under the seventh proviso of Section 139(1) are as follows:

• who have deposited an amount, or an aggregate of amounts, in one or more current accounts with a banking company or a co-operative bank; or
• who have incurred a single or aggregate expenditure of more than Rs 2 lakh for himself or any other person for travel to a foreign country; or
• who have spent an amount or an aggregate of amounts exceeding Rs 1 lakh rupees on electricity consumption; or
• who has TDS/TCS is Rs 25,000 or more; or
• who has sales above Rs 60 lakh or Professional Reciept is more than Rs 10 lakh; or
• who has savings Bank Deposit is Rs 50 Lakh or more; or
• who meet any other requirements that may be imposed.

New ITR filing rules: Mandatory to file Return If your TDS is Rs 25,000 or more, otherwise there will be trouble

As a result, if you are required to file ITR due to any of the conditions listed above, make sure that you file your tax return before the deadline, or else a late fee will be assessed even if your gross total income is less than the taxable limit.

• The second exception is if you own foreign assets such as foreign company stock. If you are an ordinarily resident individual with foreign asset income and your taxable income is less than the threshold limit, you must pay the penalty if you do not file ITR by the deadline.