The government on Thursday announced the extension of the Income Tax Return (ITR) filing last date by a month to August 31, 2018. The Finance Minister tweeted “considering upon the matter, the Central Board of Direct Taxes (CBDT) has extended the ‘Due Date’ for filing the Income Tax Return from 31st July, 2018 to 31st August 2018 in respect of the said categories of taxpayers.”
The taxman imposes a fine after the new deadline of August 31 will face a penalty of up to Rs. 10,000 for delayed filing of Income Tax Return, that means the assesses can file their Income Tax Return (ITR) for the financial year 2017-2018 by August 31, without any penalty charges.
Upon consideration of the matter, the Central Board of Direct Taxes (CBDT) extends the ‘Due Date’ for filing of Income Tax Returns from 31st July, 2018 to 31st August, 2018 in respect of the said categories of taxpayers.
— Ministry of Finance (@FinMinIndia) July 26, 2018
As per the amendment made in the Finance Act 2017 the tax expert says that taxpayers are liable to pay a fee of Rs 5,000 if their tax return for the financial year 2017-18 is filed after the return filing deadline but before December 31, 2018. The fee payable to the taxpayer will increase to Rs 10,000, if the tax return is filed after January 1, 2019. However, if the total income of the taxpayer is less than Rs 5,00,000, the fee amount shall not exceed Rs 1,000.
Kuldip Kumar, Partner & Leader, Personal Tax, PwC India said that although the due date has been extended, those who have taxes to pay should pay before July 31 should save additional one month interest under section 234B.