Individuals who are below the 60 years of age earning Rs. 250,000 or more annually are mandatorily required to file ITRs, whereas, the limit for senior citizens or those between 60 years and 80 years of age is Rs 500,000.
This year however the government has raised the penalty amount for missing the deadline, by imposing a fine up to Rs.10,000 which was Rs.5,000 imposed last year. The late fee is only applicable if the taxpayer’s net total income, i.e. income after claiming eligible deductions and tax exemptions, exceeds Rs 500,000 in the current financial year. Individuals with taxable income up to Rs 500,000 will have to pay a fine of Rs 1,000 if they file their ITR after December 31. For individuals whose taxable income is more than Rs 500,000, the same penalty will go up to Rs 10,000.