Who doesn’t have to pay a late fee if they file their tax return after the due date?

If you have taxable income of more than Rs 5 lakh, you’ll have to pay a penalty of Rs 5,000 if you file your ITR after the deadline. For people having taxable income less than Rs 5,00,000, the penalty is Rs 1,000. However, some people will be able to file their ITR beyond the deadline without incurring a late fee.

The deadline for filing FY20202-21 income tax returns (ITR) was December 31, 2021. Individuals who have not yet submitted their ITR will be charged a late fee if they file one late.

If you have taxable income of more than Rs 5 lakh, you’ll have to pay a penalty of Rs 5,000 if you file your ITR after the deadline. For people having taxable income less than Rs 5,00,000, the penalty is Rs 1,000.

However, some people can file their taxes after the deadline and avoid paying a penalty.

WHO CAN FILE AN ITR AFTER THE DEADLINE WITHOUT BEING CHARGED A LATE FEE?

People with gross total income below the basic exemption limit are excused from paying a late charge if they file their ITR after the due date.

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The basic exemption limit that an individual is entitled to is determined by the tax regime. The baseline exemption ceiling under the new regime, where there are no common exemptions, is Rs 2.5 lakh, regardless of age.

Meanwhile, under the previous income tax system, the baseline exemption level was determined by the individual’s age.

It should be mentioned that under the previous tax regime, the basic exemption ceiling for residents under 60 years of age was Rs 2.5 lakh, while it was Rs 3 lakh for those over 60 but under 80 years of age. Citizens over the age of 80 have a basic exemption ceiling of Rs 5 lakh.

As a result, if these conditions apply to an individual, he or she will be able to file an ITR without incurring a late fee even if the deadline has passed.

TERMS AND CONDITIONS APPLY

Even for people who meet the basic exemption limit criteria, there are several exceptions. Even though their gross total income is less than the basic exemption ceiling, certain individuals are required to file an ITR.

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Individuals who fall under Section 139(1)’s seventh proviso, for example, will be required to pay a late charge even if their gross total income is less than the basic exemption amount.

1) Those who have deposited a sum or an aggregate of amounts in one or more accounts with a bank or co-operative bank in excess of Rs 1 crore come under the above-mentioned group.

2) Those who have spent more than Rs 2 lakh on themselves or another person for travel to a foreign country also fall into this category.

3) Those who have spent an amount (or an accumulation of amounts) on energy consumption in excess of Rs 1 lakh also fall into this category.

Another exemption is when a taxpayer has overseas assets, such as foreign company stocks. Simply put, you must pay a penalty for late ITR filing if your gross total income is below the basic income threshold but you have income from foreign assets.