Taxpayers who do not file their income tax returns (ITRs) on time will have to shell out a penalty of up to Rs10,000, but from the 2018-19 Assessment Year (AY).
“In order to ensure that return is filed within due date, it is proposed to insert a new section 234F in the Act (I-T Act) to provide that a fee for delay in furnishing of return shall be levied for assessment year 2018-19 and onwards in a case where the return is not filed within the due dates specified for filing of return under sub-section (1) of section 139,” the memorandum for the Finance Bill 2017 said.
It specified two levels of penalty in this regard: “A fee of Rs5,000 shall be payable, if the return is furnished after the due date but on or before December 31 of the assessment year and a fee of Rs10,000 shall be payable in any other case.”
However, for small taxpayers or where the total income does not exceed Rs5 lakh, it is “proposed that the fee amount shall not exceed Rs1,000.” The memorandum said the decision was being taken “in view of the non-intrusive information-driven approach for improving tax compliance and effective utilisation of information in tax administration it is important that the returns are filed within the due dates.”
Further, it added that the “reduced time limits proposed for making of assessment” of I-T cases, as proposed in the latest Finance Bill, are also based on pre-requisite that returns are filed on time.”
“These amendments will take effect from April 1, 2018 and will accordingly apply in relation to assessment year 2018-19 and subsequent years,” it said
Finally due date for
filing of income tax retunes(ITR) for Assessment year 2016-17 and
2017-18 is over. Now its time to get ready for AY 2018-19 ITR to avoid
penalty of late filing of income tax return.
Government has introduced new income tax forms for AY 2018-19. Rules are
getting tough day by day or we can say that taxpayers must be active
and punctual now to avoid any unnecessary penalties. So here in this
article, our main objective is to save taxpayers from paying unnecessary
penalties. Unnecessary means those penalties which we can avoid by
proper follow up.
A new section Sec 234F is inserted to levy penalty for late filing of
ITR. Sec 234F is effective from Assessment Year 2018-19 (Financial Year
2017-18).
If ITR for AY 2017-18 is filed after due date (31st July for individuals
without audit, 30th Sept for other persons) but before 31st Dec of the
Assessment year (31-12-2018) in case of Assessment year 2018-19) then
Penalty of Rs.5000/- will be levied and If ITR is filed after 31st Dec
then Res.10000 will be levied as penalty.
Exception:- If the total Income of a person is below or equal to Rs. 5
Lakhs, then penalty will be restricted to Rs.1000 only.
Read more at: https://www.caclubindia.com/articles/penalty-for-delayed-filing-of-income-tax-return-for-ay-2018-19-32919.asp
Read more at: https://www.caclubindia.com/articles/penalty-for-delayed-filing-of-income-tax-return-for-ay-2018-19-32919.asp
