ITR 2017-18 late filing: If you file returns after December 31, it will be considered as ‘belated return filing’ where individuals will have to pay double the fine.

Individuals who are yet to file their income tax return for financial year 2017-18 should consider doing it before the year-ending deadline of December 31, 2018. Those who fail to do so will have to pay a hefty fine of Rs 10,000 under income tax rules.

If you file returns after December 31, it will be considered as belated return filing’ where individuals will have to pay double the fine. However, if you file your ITR by tomorrow, you will only have to pay a late fee of Rs 5,000.

The income tax department has been actively sharing advertisements to encourage people to file their returns before the final deadline of the present financial year.

People should also know that from assessment year 2018-19, the tax department has implemented large penalties ranging from Rs 5,000 to Rs 10,000 as a measure to ensure people become more tax-compliant.

Read: ITR: 10 things salaried people should follow

Earlier, there was no hard and fast rule pertaining to penalties on late filing and the process was left for the tax officer to decide. However, an amendment passed in last year’s budget led to the addition of the new rule under the Income Tax Act.

Under Section 234F of the act, individuals who file ITR after a given deadline will be required to pay a maximum late filing fee of Rs 10,000. However, those who manage to file their IRR by tomorrow will only have to pay a late fee of Rs 5,000.

On the other hand, small taxpayers with an income below Rs 5,000 in a financial year will have to just pay Rs 1,000 late fee as mandated by the tax authorities.

People who miss tomorrow’s deadline will have to clear it by January 1-March 31, 2019 to avoid any notice from the department.

So, those yet to file ITR for the financial year 2017-18 should ensure that the process is completed before midnight tomorrow. It is best to file income tax to avoid any unpaid tax liability.