Union Budget 2017 – Penalty up to ? 10,000/- for Tax payers delaying in filing IT Returns
A scoop for the tax payers in this Union budget 2017 and in particular for the tax payers who do not file their Income Tax Returns on or before the specified deadline. If you are one among them, be prepared for a late fee of ?10,000/-. But this is coming into effect only from the 2018-19 assessment year.
In regards to this the memorandum for the Finance Bill 2017 has said that, “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”.
Penalty is categorized as below:
|?5,000/-||Filing the IT returns after the due date for filing and on or before 31st December of the assessment year|
|?10,000/-||Filing the IT returns after 31st December of the assessment year|
|Less than or equal to ?1,000/-||For smaller tax payers whose annual income does not exceed ?5,00,000/- (Five Lakhs)|
The memorandum further stated that the decision was being taken “in view of the non-intrusive information-driven approach for improving tax compliance and effective utilization of information in tax administration it is important that the returns are filed within the due dates.”
This was proposed in the latest Finance Bill based on the pre-requisite that returns are to be filed on time.
It added up that, “These amendments will take effect from April 1, 2018 and will accordingly apply in relation to assessment year 2018-19 and subsequent years,”.