INCOME TAX RETURN AY 2018-19....
NEW SECTION 234F....
FILE RETURN B4 DUE DATE TO SAVE FROM
LATE FILING FEES..UP TO Rs 10,000...
FOR YEAR ENDING 31st MARCH 2018.
Penalty for Late Filing Income Tax Return – From 1st April 2018
As per Section 234F of the Income Tax Act, from 1st April 208, the penalty for late filing income tax return would be as follows:
Late Filing Between 1st August to 31st December
A penalty of Rs.5000 will be applicable if an income tax return due on 31st July is filed late between the due date and 31st December of the assessment year.
Late Filing After 31st December
A penalty of Rs.10,000 will be applicable if an income tax return due on 31st July is filed late after 31st December of the assessment year.
Reduction in Penalty
If a taxpayer has total income of Rs.5 lakh rupees or below, the maximum penalty for late filing of income tax return has been capped at Rs.1000 under Section 234F.
Penalty for Late Filing Income Tax Return – Before 1st April 2018
Under the old provisions applicable for income tax returns filed up to FY 2016-17, taxpayers who late file their income tax return could be subject to a penalty of Rs.5000. However, the penalty of Rs.5000 for late filing of income tax return is not automatically levied. In case an Income Tax Officer issues a notice for late filing of income tax return, the taxpayer would have to pay the penalty of Rs.5000. Hence, the penalty for late filing of income tax return is solely based on the decision of the assessing officer
The Finance Bill, 2017 proposes to levy fees of Rs.5,000 in case where return is furnished after the due date but on or before 31St December of the relevant assessment year and Rs.10,000, in other cases. However, it is also proposed to restrict the fees to Rs.1,000, where the total income does not exceed five lakh rupees.
Current provisions provide for penalty of Rs.5,000 under section 271 F in case where return is furnished after end of relevant assessment year provided there is no reasonable cause for such delay.
The proposal is made with a view to ensure that returns are filed within the due dates specified in section 139(1). However, fees proposed under section 234F will be leviable on all assessees who have furnished return beyond the due date specified under section 139(1) irrespective of the reason for such delay and whether all the taxes have been paid through TDS or Advance Tax.
Also, the assessee cannot justify his cause for delay under any appeal against the same as there is no proposed provision to consider the reasonable cause for delay on the part of assessee.
Further, fee is generally levied in respect of services rendered. Whereas collection of tax by the Government is a sovereign function, as such, there is no rendering of services. Delay in filing of return is in contravention of law for which penalty should be attracted. The same can be waived if reasonable cause is proved
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