Delay in Income Tax Filing Will Lead to Heavy Penalty

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Delay in Income Tax Filing penalty

The Indian government is taking many initiatives to ensure the higher volume of tax return filing by the coming assessment years. One of the notable initiatives taken is increasing the penalty rate for non-filing income tax return or delayed return filing. In finance Bill 2017, it has proposed that anyone who fails to file income tax return by the due date have to pay a penalty which can be up to INR 10,000. But, this penalty for late income tax filing will be affected from the upcoming assessment year which is 2018-19. The Income Tax Deductions You Can Avail Before It is Too Late.

Delay in Income Tax Filing Will Lead to Heavy Penalty

Any person who is required to file income tax under sub-section (1) of section 139, have to pay penalty fees of INR 5,000 if the due income tax has been filed within December 31st of the assessment year. If this category of taxpayers delays tax return filing further, then they have to pay a penalty of INR 10,000. This amendment will be introduced under Section 234F which will be soon inserted into the Income Tax Act. However, the penalty amount will not exceed INR 1,000 for the small taxpayers who earn less than INR 5 lakhs a year.

This new income tax filing rules will be in effect from 1st April 2018. So, let’s see the taxpayer types that fall under the category described in Sub-section (1) of Section 139.

The taxpayer defined in Sub-section (1) of Section 139:

  • Any company or business firm fall under this category.
  • Any individual who exceed the minimum tax-exempt limit

The new definition for “Due Date” of tax return filing under Section 139(1):

  • Any company except the ones referred in clause (aa).
  • Any individual whose income need to be audited under this act.
  • Any individual whose income need to be audited under any other act for the time-being.
  • Any working partner of a firm, whose income need to be audited by 30th September of the AY, under this act or any other act for the time-being.
  • 31st October for any individual referred in the first provision of this sub-section.
  • 31st July of the AY, for other individual required to do income tax filing.

This initiative has been taken purely to achieve the higher tax filing target in India and filing return by due dates is necessary for that. The Income Tax Slab Changes Announced In Union Budget 2017. And the reduced time limit for making a decision on assessment will also contribute to the higher tax return filing volume by prescribed due dates.

4 COMMENTS

  1. Great work by ITR team it really nice to explaing everything about taxes.
    Thnx for this this really help me alot.This blog is really helpfull for us to know more about delay in filling tax. This tell us everything that we should know about ITR. This is like a algorithm to fill taxes becaute it tell us step by step how we should fill taxes and yes it is also easy to understand. It tell breifly and accurately about taxes. The best thing about this blog is that we can get every information hear only. we shoud not go on different side to search about itr. It’s really great that u take initiative to tell people about this and your way of representation of thought is really good.We can understand out problem very easily and get our answers faster.Great keep it up.

  2. This is the blog that i needed and i have been searching for such blog from a very long time now
    but today finally i found it and that to even in such an easy language which was really easy for me to understand and very easy to learn from it.
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    It genuinely helped me with the information i was seeking for. Appreciate it.

  3. helpful this blog has really helped me alot. This really helps and tells a process that is required to fill up an Income tax return. This blog tell us step by step how we should fill taxes and yes it is also easy to understand. Each and every details have been mentioned in simple and clear language.
    i would prefer anyone to have a eye on it to clear all their doubts. The best thing about this blog is that we can get every information hear only. we shoud not go on different side to search about itr. Great work keep it up.It tell breifly and accurately about taxes. The blog is very detailed and the way it explains the things is very easy to understand and to retain it really helps a person on how to fill up the ITR and how to enquire about it. Great work from ALL INDIA ITR since it is a very well written and a very useful blog.

  4. This is very informative article that really helps me understand about the penalty hat may charge due to delay in income tax filling how we can overcame from it, Like always the way of explaing i such a manner that every one can easily understood very easily and moreover it highlighted all the main topics that may allow a taxpayer to prevent from this types of heavy tax.However, the penalty amount will not exceed INR 1,000 for the small taxpayers who earn less than INR 5 lakhs a year., thanks ALL INDIA ITR.

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