The Finance Ministry extended the date of ITR returns till 31 Aug. Earlier the last date of filing ITRs was 31 July which extended to 31 Aug.

The Ministry of finance tweeted on 26 July that “upon the consideration of the matter, the CBDT extends the ‘due date’ for the filing of Income Tax Returns from 31 July 2018 to 31 August 2018 in respect of said categories of taxpayers”

The Ministry even announced that the penalty will be enacted for the late filing of the ITRs. It will be the first time that penalty of 1000 will be laid if the ITRs return will be filed after the due date, as per new section 234F  which had been inserted in section 139(1) of the Act. This penalty is acting from  AY 2018-19.

The ITRs form notification was out in the month of April which mentioned the last date as 31 July but on Ministry Of Finance extended it till 31 July.

The Income Tax Act 196 and the Income Tax Rules, 1962, announces that citizens have to file returns with the Income Tax Department at the end of every Financial Year. The citizen is obligated to file it before the specified date.

The ITR form contains the details of citizen’s income. Various forms are available like  ITR 1, ITR 2, ITR3, ITR 4, ITR 5, ITR 6 and ITR 7.

Kuldip Kumar, Partner & Leader, Personal Tax, PwC India stated that one should not wait till 31 August to file the income tax return, file it before 31 July as it will save additional one month interest under section 234B.

As per the new provision, one who files the Income Tax Returns after the due date and before 31 December will be punished with the fine of amount 5000 whereas whoever pays it after 31 December will be labelled with a fine of Rs 1000.

The Central Board of Direct Taxes (CBDT) expects that nearly 1.3 crore Indians will emerge as new filer this year with 13.3 lakh filers in Uttar Pradesh only.