The process of filing income tax returns is an integral aspect of financial planning for individuals and businesses alike. As the financial year comes to a close, taxpayers often wonder about the timing and feasibility of filing their income tax returns. One common question that arises is, “Can we file income tax return for FY (Financial Year) 2020-21 now?” In this blog post, we explore the answer to this question and provide insights into the implications of filing income tax returns for the specified financial year.
Understanding the Timeline
Financial Year 2020-21
FY 2020-21 commenced on April 1, 2020, and concluded on March 31, 2021. During this period, taxpayers earned income, made investments, and incurred expenses that are relevant for tax purposes.
Income Tax Return Filing Deadline
The deadline for filing income tax returns for FY 2020-21, without any extensions, was originally set for July 31, 2021, for individuals and other non-audit cases. For businesses and entities requiring audit, the deadline was extended to October 31, 2021.
Current Status of Filing
Post-Deadline Filings
Once the deadline for filing income tax returns passes, taxpayers can still file their returns, albeit with certain implications. Late filing may attract penalties and interest, depending on the delay and the amount of tax payable.
Revised Deadlines
Tax authorities sometimes extend the deadline for filing income tax returns due to exceptional circumstances or technical glitches in the tax filing portal. In such cases, taxpayers are provided with additional time to file their returns without incurring penalties.
Implications of Delayed Filing
Penalties and Interest
Late filing of income tax returns can lead to penalties under Section 234F of the Income Tax Act. The penalty amount varies based on the delay and the total income of the taxpayer. Additionally, interest may be levied on any outstanding tax liabilities.
Note:- For FY 2020-21 (AY 2021-22), an updated return can be filed by 31 March 2024.
Missed Opportunities
Delaying the filing of income tax returns can result in missed opportunities to claim deductions, exemptions, and refunds. Timely filing allows taxpayers to optimize their tax positions and avoid unnecessary financial losses.
Conclusion
In conclusion, the ability to file income tax returns for FY 2020-21 now depends on various factors, including the original deadline, any extensions granted by tax authorities, and the implications of delayed filing. While late filing is possible, it is advisable to file returns within the stipulated deadlines to avoid penalties and maximize tax benefits.