Date of Return filing extended but not the date of Tax Payment

 

The INCOME TAX RETURN (ITR) FILING due date is extended from 31st July to 15th September. Sounds like good news, right? But hold on… there’s more you need to know

There are actually TWO types of due dates in income tax:
1  DATE OF RETURN FILING

2  DATE OF TAX PAYMENT

For most SALARIED INDIVIDUALS, both these dates are usually 31st July.
This year, while the RETURN FILING due date is extended to 15th September, the TAX PAYMENT due date still remains 31st July (as of now).

Let’s understand with an example:

Suppose your total tax payable is ₹30,000 and TDS already deducted is ₹20,000.
That means you still need to pay ₹10,000 by 31st July.
If you don’t pay it by then, you’ll have to pay INTEREST UNDER SECTION 234A @ 1% PER MONTH.
In case your tax liability is more than ₹10,000, INTEREST UNDER SECTION 234B AND 234C might attract too.

However, if there’s NO TAX PAYABLE, you can happily wait and file your ITR by 15th September.

So what should you do now?
–  Calculate your tax liability

–  If you owe any amount, make sure to PAY IT BY 31st JULY

–  Then you can relax and file by 15th September