Till FY 2019-20 (AY 2020-21), an individual was allowed time till the end of the financial year, i.e., March 31 to file belated ITR by paying a maximum penalty of up to Rs 10,000. However, this changed from FY 2020-21 (AY 2020-21). Here's why the penalty of FY 2020-21 (AY 2021-22) is half that of FY 2019-20 (AY 2020-21) if the ITR is filed after the expiry of the current deadline.