As the deadline for filing income tax returns for the assessment year 2024-25 approaches, it is crucial to file your tax return on time to avoid penalties. Here are some common tax return filing penalties to be aware of:
Late Filing of Income Tax Return
1. Penalty for Late Filing:
– Rs 5,000 if you file your income tax return after the due date of July 31, 2024.
2. Interest on Tax Liability:
– If your tax liability exceeds Rs 10,000, a 1% interest on the tax amount is charged for each month of delay.
3. Incorrect PAN Number:
– A penalty of Rs 10,000 if you provide an incorrect PAN number.
TDS-Related Penalties
1. Failure to Deduct TDS:
– A 1% interest for every month of delay if TDS is not deducted on the purchase of property worth more than Rs 50 lakh.
2. Failure to Deposit TDS:
– If TDS is deducted but not deposited with the government, a higher penalty of 1.5% per month from the date of deduction applies.
Other Tax Penalties
1. Cash Payment Penalty:
– 100% of the amount received in cash if you receive a single cash payment exceeding Rs 2 lakh.
2. Concealment of Income:
– Penalty ranges from 100% to 300% of the tax evaded.
– There is a possibility of imprisonment for up to 6 months if the amount of tax evaded exceeds Rs 25 lakh.
3. Failure to Get Accounts Audited:
– The highest amount among 0.5% of total sales, gross receipts, or Rs 1.5 lakh if the taxpayer is required to get their accounts audited but fails to do so.
Key Takeaways
– File your ITR by July 31, 2024 to avoid penalties.
– Ensure TDS is correctly deducted and deposited on time.
– Avoid large cash transactions and report all income accurately.
– Get your accounts audited if required to avoid additional penalties.