New Delhi: As the deadline for filing your income tax return is around the corner, did you know that missing the due date could attract a penalty? By chance you fail to file your income tax return before the deadline, the government still gives you an option to file returns within the assessment year (AY), which is 2019-20. This means taxpayers who miss the deadline can file a belated income tax return till March 31, 2019, before the completion of assessment year through the Income Tax Department. This however, comes with a cost!

Meanwhile, the Income Tax Department has extended the due date for assessees to file their income tax returns by one month from July 31 to August 31. In case you are not able to file your return before the deadline, you have an option to file it after the due date but before December 31 of the assessment year. However, for this you will have to pay a penalty of Rs 5,000.

Again, if you miss the second deadline, the income tax return could be filed between January 1 and March 31 of assessment year 2019-20, but then you will have to pay a late fee of Rs 10,000.  According to the recent income tax slab changes announced in Budget 2019.

These penalty are applicable for individuals who have an income above Rs 5 lakh. For those who file their income tax return between January 1 and March 31 of assessment year 2019-20 and their income is less than Rs 5 lakh, a penalty of up to ₹1,000 will be levied.

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As per the changes made in income tax rules, penalty for missing deadline is mandatory now. In case you have missed the deadline, the tax returns cannot be filed unless you pay the penalty. This came into effect last year. It is also to be kept in mind that if you have tax to pay, the IT department will charge interest on the due tax amount along with the penalty amount.

The IT Department levies an interest of 1 per cent per month or part of a month. The nature of interest charged is simple interest. As per the new rules, if a taxpayer fails to file ITR altogether, IT Department can send you a notice and it can also lead to prosecution.

The jail term can range from three months to two years if you fail to file your ITR. The jail term varies depending upon the due tax amount and could lead to as many as seven years.

Usually prosecution for not filing income tax return happens in extreme cases, where the amount involved is huge or someone has undeclared money. It is also initiated when an income tax officers issued a notice and the taxpayer has not responded to it not has filed the return in response.

Therefore, in order to save yourself from prosecution or shelling out heavy late fine, it is advisable to get in touch with a chartered accountant, financial planner or financial advisor and pay your income tax returns on time.