Income Tax: Know the cost of filing belated income tax returns

Individual taxpayers must file their income tax returns by July 31 every year. Due to the COVID-19 pandemic, the income tax (I-T) department has extended the due date to September 30 for the assessment year 2021-22 (financial year 2020-21). Failure to file returns by this date will attract a penalty of Rs 5,000 up to December 31. This assessment year, however, this deadline has been extended to January 31, 2022. If your income is less than Rs 5 lakh, the penalty will be restricted to Rs 1,000. Don’t miss the deadlines, but do not rush to file returns at the last moment either. Glitches on the new I-T portal warrant a wait-and-watch approach until a resolution is in sight.