Avoid Late Filing Fees with Bharat Tax Services

Filing your Income Tax Return (ITR) on time is crucial to avoid late filing fees and other penalties imposed by the Income Tax Department. At Bharat Tax Services, we ensure that your ITR is filed accurately and within the stipulated deadlines to help you avoid these charges.

Late Filing Fees as per the Income Tax Act

Section 234F of the Income Tax Act mandates a late filing fee for filing ITR after the due date. The fees are structured as follows:

  1. For Income up to ₹5 Lakhs:

    • If ITR is filed after the due date but before December 31st of the assessment year, a fee of ₹1,000 is levied.
    • If ITR is filed after December 31st but before March 31st of the assessment year, the fee remains ₹1,000.

  2. For Income above ₹5 Lakhs:

    • If ITR is filed after the due date but before December 31st of the assessment year, a fee of ₹5,000 is levied.
    • If ITR is filed after December 31st but before March 31st of the assessment year, the fee is ₹10,000.

Consequences of Late Filing

  1. Interest on Tax Due: Under Section 234A, interest at the rate of 1% per month or part thereof is levied on the unpaid tax amount from the due date until the date of filing.
  2. Loss of Carry Forward Benefits: Losses under various heads of income, except for house property loss, cannot be carried forward if the ITR is not filed within the due date.
  3. Delayed Refunds: Any excess tax paid or TDS deducted will be refunded only after the ITR is filed. Late filing delays the processing of refunds.
  4. Ineligibility for Certain Deductions: Specific deductions under Chapter VI-A (like Section 80C, 80D, etc.) may not be allowed if the return is not filed on time.

Real-Life Example

Scenario: Mr. Mehta, a salaried individual with an annual income of ₹8,00,000, failed to file his ITR for the FY 2021-22 by the due date of July 31, 2022.

Consequences:

  1. Late Filing Fee:

    • Mr. Mehta files his return on January 15, 2023.
    • As his income exceeds ₹5,00,000 and the return is filed after December 31, 2022, a late filing fee of ₹10,000 is applicable under Section 234F.

  2. Interest on Tax Due:

    • Assume Mr. Mehta had a tax liability of ₹20,000 after TDS.
    • He is liable to pay interest under Section 234A at 1% per month from August 1, 2022, until January 15, 2023 (6 months).
    • Interest amount: 1% of ₹20,000 × 6 = ₹1,200

  3. Delayed Refund:

    • Mr. Mehta had TDS of ₹25,000 deducted.
    • He is eligible for a refund of ₹5,000, which will now be delayed due to late filing.

Total Additional Cost:

  • Late Filing Fee: ₹10,000
  • Interest on Tax Due: ₹1,200
  • Total Additional Cost: ₹11,200

How Bharat Tax Services Can Help

  1. Timely Reminders: We provide timely reminders and updates about the due dates to ensure you never miss a deadline.
  2. Expert Guidance: Our team of experts assists you in gathering and organizing all necessary documents for timely filing.
  3. Accurate Filing: We ensure that your ITR is filed accurately, minimizing the risk of errors that could lead to delays.
  4. Maximized Benefits: Our thorough review process ensures that you claim all eligible deductions and exemptions, reducing your overall tax liability.

Avoid Late Fees and Penalties

Filing your ITR on time with Bharat Tax Services not only helps you avoid late fees and penalties but also ensures that your financial planning is in place. Let us take care of your tax filing needs so that you can focus on what matters most to you.

Contact Us

For more information or to get started with your ITR filing, connect with us:

Let Bharat Tax Services handle your ITR filing, ensuring a smooth, accurate, and beneficial experience. Contact us today!

× Hi