New Delhi, December 13: The Ministry of Finance had extended the deadline to file income tax return of ITR by a month to August 31, 2018. However, many are yet to file their ITRs and liable to pay penalty. A section of taxpayers will have to pay a fine of Rs 10,000 if they fail to file their income tax returns before December 31, 2018. The IT department has been sending this alert through an SMS to taxpayers.

As per the new law, a penalty of Rs 5,000 will be levied if the return is filed after the due date, which was August 31. If a taxpayer files the ITR after December 31, 2018, a fine of Rs 10,000 will be imposed on him/her. Therefore, you will have to pay a penalty of Rs 5,000 if you file the return before December 31, 2018. Delaying it further would cost you around Rs 10,000. How to File Income Tax Online? 5 Easy Websites Which You can Use.

However, as a relief to small taxpayers, if your income is not more than Rs 5 lakh, the maximum penalty levied will be Rs 1,000. "Dear Taxpayer - Tax URGENT action now and file your Income Tax Return before 31st December 2018 - Avoid higher Late fee of upto Rs 10,000," reads the SMS sent by the Income Tax department.

A total of Rs 5.42 crore income tax returns (ITRs) were filed till the end of extended August 31 deadline this year. Below are the steps to know how to file ITR:

Register yourself at the Income Tax Department's e-filing portal - incometaxindiaefiling.gov.in. Keep your PAN card ready because you will require it during the registration process. Your mobile number and email address are also required. Your PAN will be your user id.

Select the relevant form and the assessment year, for which the return has to be filed. Keep your bank statement, Form-16 and other investment related documents in handy. As per reports, if you earn more than Rs 50 lakh, from this year you will have to fill an additional column —"AL" or assets and liabilities. You will have to disclose the value of your assets and liabilities. Assets have to be declared at cost.

Pay Income Tax due, if any, then recalculate the tax and hit the ‘Submit’ button. The Department asks you whether you want to digitally sign your return, if you choose ‘Yes’, then you need to upload your signature, which needs to be pre-registered at the Income Tax website.

(The above story first appeared on LatestLY on Dec 13, 2018 03:19 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).