By Chirag Nangia
I missed filing ITR for FY18-19 (AY19-20) as I was abroad from June to August end. Can I file it now with late fee? – Arup Bose
If you have failed to furnish your ITR before the due date, (i.e., August 31, 2019), you can still file the same before the end of the assessment year, i.e., before March 31, 2020. Late filing of return shall attract a fee of Rs. 5,000 if it is furnished on or before December 31, 2019. Post this date, Rs. 10,000 shall be charged. However, if your taxable income is below Rs. 5 lakh, then fee shall not exceed Rs. 1,000.
Inflation has been softening in the last 3 years. The Cost of Inflation Index (CII) has moved up from 272 (2017-18) to 289 (2019-20), just up 6.25. In view of the above, going forward, do you feel it makes sense to use 10% tax instead of 20% with indexation for long term debt fund taxation? —A S Harish
Tax liability will depend upon the cost of acquisition and the date of sale/purchase. It is always desirable to do a comparative analysis of the two available options and the option more beneficial to you may be chosen.
If my gross income for FY19-20 is Rs. 4 lakh , do I need to invest any amount under Section 80C to avail the benefit of Section 87A? I am 74 years old and have income from pension and interest from bank deposits. —Manoj Anjaria
A resident individual can claim rebate from income-tax under Section 87A if his total income after deduction under Chapter VI-A for FY19-20 is less than Rs. 5 lakh. The maximum amount of tax rebate permissible is 100% of tax amount or Rs. 12,500, whichever is less. Hence, you shall be allowed to claim full tax rebate on income of Rs. 4 lakh even if no investment under Section 80C is made.
I have got a demand notice for Rs. 20. Should I pay online or pay in cash in the nearest income tax office? —Manoj Anjaria
You can either pay the outstanding demand of Rs. 20 online, using the TIN-NSDL PORTAL or through offline mode, by visiting your bank branch. The 7-digit BSR Code, challan serial number along with the date of deposit (generated in both online and offline payment modes) shall be required to be quoted while accepting the outstanding tax demand on the e-filing portal.
(The writer is director, Nangia Advisors LLP. Send your queries to firstname.lastname@example.org)
via Income Tax Returns: You can file ITR for FY 18-19 by December 31 – The Financial Express