You would have studied Newton’s third law of motion during your school days “For every action, there is an equal and opposite reaction.”. For every deed, there is a consequence. Similarly, for every error, there is a penalty.
Why are we talking about penalties now? It’s because that is what we will discuss now. If you file your income tax late, you might have to pay a penalty. There are new changes which are being introduced.
Fine For Filing ITR Late:
The deadline of filing your income tax returns(ITR) is July 31st and if file it after that date, you will have to pay a maximum penalty of 10,000 Rupees. According to the new law a penalty of Rs 5,000 will be levied upon you if you file the return after the due date but before December 31 of that year. But you will have to pay a penalty of Rs 10,000 if you file the return after December 31.
Depletion In Time Limit For Revision Of ITR:
Apart from whatever penalty you need to pay for late filing, make a mistake while filing for Financial Year(FY)2017-18 and you only have time till 31ST March 2019 to file your revised return. Earlier a taxpayer was allowed to revise his returns up to 2 years from the end of the financial year for which the returns were filed, but from now he will be given time to do so only up to an year.
Transport Allowances And Medical Reimbursements To Be Taxed:
If medical expenses and travel allowances are part of your salary then that will also be taxable at your hands. No such allowances will be there and everything will be taxable. A standard deduction of 40,000 Rupees from salary and pension will be available but you can claim it next year for FY2018-19.
Raise In Cess Levied On Tax Liability:
Cess levied on the tax liability will be hiked by 1% to 4% from FY2018-19. “Education and Health Cess” is what it will be called.
More Welfare for Senior Citizens:
Senior citizens will be benefitted more, as interest income earned by them will be exempt up to Rupees 50,000 per year. That includes income from interest earned from savings bank, post office accounts, fixed deposits and recurring deposits. TDS will be deducted only if interest income is more than 50,000 Rupees in a year.
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