Penalty ITR Late Filling for Traders
Penalty ITR late filling for Traders yes ,Late filing of ITR (income tax returns) by traders and stores does incur penalties as per Section 234F of the Income Tax Act, 1961.
For traders and stores, the penalty for late ITR filing is Rs. 5,000. However, there’s a concession for smaller businesses with total income below Rs. 5 lakh, where the penalty is limited to Rs. 1,000.
The deadline for filing ITR for the fiscal year 2022-23 (assessment year 2023-24) is July 31, 2023. Yet, traders and stores can file a belated ITR until December 31, 2023, subject to payment of the penalty.
Additionally, those failing to file ITRs on time may also face interest charges on outstanding taxes. The rate is 1% per month (or part thereof) on the tax amount due.
Meeting the ITR deadline is crucial to evade penalties and interest. E-filing via the Income Tax Department’s online portal is a viable way to file ITRs.
Several reasons might lead traders and stores to miss the ITR deadline:
- Lack of awareness about the deadline.
- Incomplete documentation.
- Engagement in other business commitments.
- Insufficient time or expertise for self-filing
To visit: https://www.incometax.gov.in
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