PENALTIES & LOSSES ON DELAY IN FILLING OF INCOME TAX RETURN

The Union Budget, 2018 has introduced some of the most radical provisions to ensure Timely Filling of Returns. The Penalties and Losses for delay in filling of the Income Tax Return are noted below for ready reference:-

 

A) DUE DATE FOR FILLING OF RETURN

1. Before 30th September of Assessment Year (for example for F. Y. 2017-18 it is 30-09-2018) for following assessees:-

a) A Company;

b) person other than Company, whose Accounts are required to be Audited;

c) partner of firm, whose accounts are required to be audited;

2.  Before 30th November of Assessment Year (for example for F. Y. 2017-18 it is 30-11-2018) for assessees who require furnishing report referred to in Section 92E;

3.  Before 31st October of Assessment Year (for example for F. Y. 2017-18 it is 31-10-2018) for persons (other than companies) referred to in first proviso of Section 139 (1);

4. Before 31st July of Assessment Year (for example for F. Y. 2017-18 it is 31-07-2018) for all other assessees.

 

B) LATE FEES FOR DELAY IN FILLING OF RETURN [Section 234 F]

A person who is required to furnish a return of income under section 139, fails to do so within the time prescribed in sub-section (1) of the said section, he shall pay, by way of fee, as below:-

1. If his total income is upto Rs. 5 Lakhs :        Rs. 1000/-
2. If his total income exceeds Rs. 5 Lakhs

– Return filled upto 31^st Dec of A.Y.           :        Rs. 5000/-

– Return filled after 31^st Dec of A. Y.         :        Rs. 10000/-

 

C) There is no provision for filling return after the end of the Assessment Year. For example the return for the F. Y. 2018-19 cannot be filled after 31-03-2019.

 

D) CANCELLATION OF ALL DEDUCTIONS U/S VI C (Section 80 AC) – Effective from F. Y. 2017-18 (A. Y. 2018-19)

No deduction is allowed under Chapter VIC for Section 80H to 80RRB of the Income Tax Act, 1961 unless the Return of Income is filled within the Due Date specified u/s 139 (1) of the Income Tax Act, 1961.

Please note that Deductions Chapter VI B including 80C, 80D, 80G etc are not covered under the provisions of Section 80AC and shall not be disallowed on delay in Filling of Income Tax Return.