New Delhi: You can file income tax returns for this year (FY 2020-21) by December 31 due to technical glitches in the Income Tax Portal. The government has given this deadline due to repeated errors in the portal. Even if you file your return by December 31, if you have not deposited the tax, you will have to pay a penalty. That too at the full 1 percent per month. However, this penalty will be levied only if you have an income tax liability of more than Rs 1 lakh.
There are experts that the liability of income tax will be determined in two ways. The first one is slated to fall in the individual business category. Second, people who are working in a company and whose taxes are audited. The last date for depositing outstanding tax in the earlier case is July 31. While in the second case October 31. However, in both cases, the amount of pending tax should be more than Rs 1 lakh.
In fact, filing income tax returns and depositing the tax that is being levied on you are two different things. Experts point out that according to Section 234A of income tax, you are fined 1 percent per month for not depositing tax liability on time. The penalty will be levied on the same amount as your tax payment is avoided.