I was recently asked about penalty on filing your income tax returns beyond the due date of 31st July. As you know I've been urging many of my friends on Steemit from India to avoid delaying filing their returns.
IT department is getting stricter as the years roll on and the scrutiny around transactions with cryptocurrency exchanges are on a rise. It's good to keep your paperwork in order at all times.
Many feel there's no need to file your paperwork in time. But remember, you are liable to pay a penatly for filing your returns beyond 31 July, 2018 unless of course for some reason our government decides to extend it.
Late filing fees
If ITR is filed after deadline but before 31st of December of 2018 (assessment year) then the penalty is Rs. 5000. If it's filed between 1st January but before March 31st 2019 then the fine is Rs. 10,000.
How avoid penalty?
If a tax payer's gross income doesn't exceed 500,000 INR then the penalty amount is only Rs. 1000.Budget 2017 brought into effect the law of levying late filing fees under 234F of the Income tax act. This is applicable for FY 2017-2018 and AY 2018-2019.
If your income doesn't exceed the basic exemption limit and you file a delayed return then you are not liable for any penalty.
However, if your income is below 2.5L you are still required by law to file your returns. I advise you to consult your local chartered account to get an expert opinion. There's less than a week to go before the last date for filing your returns.
You can read my post-Benefits of Filing ITR (Income Tax Return) to learn more about the subject.
FY: Financial Year
AY: Assessment Year
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So I am a bit confused.
Do I have to pay taxes even if I don't convert my Cryptocurrency to INR ?
In this Financial Year, I only withdrew about 1 Lakh INR around December so do I have to pay taxes on that?
Can you please give me an answer @firepower
IMHO, you don't have to pay tax on cryptos you hold since there is no regulations yet.
If you have made money out of selling your cryptocurrency then it is taxed as short-term capital gains(STCG). You need to declare that as income from other sources in your IT returns.
Have a look at the article from @firepower - https://www.thequint.com/voices/opinion/how-to-file-your-taxes-for-earnings-in-bitcoin
If that income is still not over 2.5 lakhs than I guess I am ok.
You will be taxed based on consolidation of all the income(salary, house rent, bank interest etc). If you are already declaring income from salary etc, STCG(profit from sale of cryptocurrencies) will also get included and taxed accordingly.
My only income right now is from Cryptocurrency plus whatever interest my Bank is paying which is almost nothing.
You only pay taxes on the INR deposits into your bank account. Any amount or kind of deposit to your bank irrespective of why you've received is generally considered as an income by law. Your auditor can help classify these while filing your returns.
very true! our responsibilities must be fulfilled!
Those are some interesting slab rates to work through. I was thinking that with crypto India (or other countries) would have different slabs right? Income would be the profit on the base investment ( I am assuming that crypto in India is treated as speculative asstet)
Thank you friends thank you a lot so much so thank you so much for posting one again, you can post very nice post very nice post your post is very beautiful and i can learn new things from your post as well as i learned four times in india India is a very good country and a big country
Thanks for great share you explain it really will I will consider it for sure now.
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Yes, ITR return date is July 31, 2018. And it's our responsibility to file our ITR before last date and we support our country to grow.
And we never wait for last day. But in some cases government extend dates...
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How many days it takes to confirm the ITR after submitting. Can you give a idea
You file it online and get the ITR document immediately upon submission. Usually auditors take a few days to complete the audit process that's all. Refund for any excess tax paid can take a couple of months after filing.
🗓 Govt extends deadline for filing income tax returns by a month to August 31 for Individuals which are not liable for tax audit.
However date has been extended for one month and last date is 31st August 2018.
Hi @firepower Now the last date for ITR filing has been extended to 31 Aug 2018. Such extension happens every year still it's advisable to do it prior to 31 july because you never know if it dept don't extend and penalty will be levied. Also you mentioned that ITR filing is mandatory even if earning is less than 2.5L but as per the latest update its not mandatory. If annual income is less than 2.5L then filing is not mandatory however if you want to do then can.
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