CBDT extends income tax return filing deadline to August 31

As mentioned in the new section, 234F, added in the Income Tax Act, an individual would have to pay a penalty of Rs 1,000, Rs 5,000 or Rs 10,000 depending on when the returns are filed.

The Central Board of Direct Taxes (CBDT) has extended the deadline of filing income tax returns from July 31 to August 31. The decision comes days before the deadline and provides relief to individuals who were required to file returns by the month end. In a couple of tweets, The finance ministry said, "Upon consideration of the matter, the Central Board of Direct Taxes (CBDT) extends the 'Due Date' for filing of Income Tax Returns from 31st July, 2018 to 31st August, 2018 in respect of the said categories of taxpayers."

"The Due Date for filing of Income Tax Returns for Assessment Year 2018-19 is 31.07.2018 for certain categories of taxpayers," the official handle of the ministry mentioned.

According to a new order applicable from 2018-19, individuals failing to meet the deadline will have to pay a penalty. As mentioned in the new section, 234F, added in the Income Tax Act, an individual would have to pay a penalty of Rs 1,000, Rs 5,000 or Rs 10,000 depending on when the returns are filed.

If the income of the taxpayer is less than Rs 5,00,000 per year then the penalty will not amount to more than Rs 1,000. For the rest, if they miss the deadline for filing taxes for FY 2017-18 but file it by December 31, 2018, then they are liable to pay Rs 5,000 as penalty. However, if they file their taxes on or after January 1, 2019 then they will need to pay a fine of Rs 10,000.

(Edited by Anwesha Madhukalya)