Hope you are doing well !!
The income tax department allows taxpayers to file returns post deadline in some specific cases. The following ways helps you file a condonation of delay request:
a. Request the Income Tax Commissioner or the prescribed authority to permit you file income tax returns and state the reason for missing the deadline. The officer can accept your request based on the following criteria:
- The claim is correct and genuine.
- The case is based on genuine hardship of merits.
- A refund has resulted due to excess tax deduction, TDS, advance tax, or self-assessment tax.
- Any other person cannot assess the tax under the Income Tax Act.
b. For such applications, the returns must be filed within a period of six years from the end of the assessment year for filing the return. For example, if you have missed filing returns on the due date of 31 March 2019, you can file such an application until 31 March 2024.
c. If you have not paid the tax for FY 2017-18, you must pay the tax along with applicable interest under Section 234A, 234B, or 234C. You must pay the tax even if you are unable to file your income tax returns.
d. It may so happen that you have paid your taxes on time but missed to file returns. In this case, you cannot file returns or apply for condonation of delay. The income tax department may issue a notice under Section 271F for not filing ITR. You may have to pay a penalty of up to Rs.5,000 for missing the deadline. If you have a genuine explanation for not filing and if the officer is satisfied with the reason, you may not have to pay the penalty.
e. The income tax department can take legal action against you for not filing returns such as issuing a notice and penalising. In the worst-case scenario, you may be prosecuted and a sentence of imprisonment for up to seven years.
f. If you receive a notice from the income tax department, you must respond to it on the income tax e-filing portal. You can, then, file the ITR to comply with the notice.
g. If you have under-reported the income, a penalty of up to 200% of the tax payable will be levied. In case if the taxpayer has paid taxes with interest after the deadline but has under-reported the income, the assessing officer may excuse his penalty and no penalty will be levied on him.
Though there is an alternative in case you miss ITR filing by the due date, it is recommended to file returns by 31 July of the corresponding assessment year. For eg, you should file your ITR by 31 August 2019 (extended from 31 July) for the FY 2018-19.