You can file ITR first, pay income tax later: Here’s how to use this feature on e-filing portal
“Income tax department has given an option of pay later when we file income tax return (ITR). Therefore, an individual can file an ITR without paying income tax dues first by using the pay later option,” said CA Abhinit Singh, Founder, Ready Accountant, a Kolkata-based educational institution. Read below to find out how to use the ‘Pay Later’ option on the Income Tax Department’s e-filing portal.
Pay later facility is available for this tax paymentAccording to Mihir Tanna, Associate Director (Direct Tax), S K Patodia & Associates, a Mumbai-based CA firm, “The ‘Pay Later’ option can be used for payment of self-assessment taxes only at the time of ITR filing.” Singh of Ready Accountant adds that the pay later option cannot be used for tax payments like advance tax, TDS and others.
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What will you lose if you use this option?There are certain things an individual needs to keep in mind while using the ‘pay later’ option. Once you select this option while filing ITR, firstly, it will say ‘You may be considered as assessee in default’. Secondly, it will say ‘You may be liable to pay interest on tax payable.Source: Mihir Tanna, S K Patodia & Associates Sujit Bangar, founder, TaxBuddy, a tax filing platform said, “An individual will be considered assessee in default if penal interest is applicable on tax dues. Once an individual is treated as an assessee in default, the income tax department can initiate all measures for recovery of such taxes.”According to the income tax department helpdesk agent, an intimation notice will be sent to the individual after the ITR is processed. This notice will mention that you have a tax amount due and to pay that as soon as possible.
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