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Income tax return ay 2013-2014

shruti (.) (240 Points)

20 November 2014

can i file income tax return of assessment year 2013-2014 of my friend today 20.11.2014 and upload the same to cpc-bangalore. gross total and net total income is 172430.00

please suggest advantage and disadvantage

whether i am liable to pay penalty of Rs. 5000/-

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11 Replies

umesh (Student CA Final ) (147 Points)
Replied 20 November 2014

YES...BUT AO MAY IMPOSE A PENALTY OF RS 5000 U/S 271F......NORMALLY HE DOESNT....BUT THERE IS A PROVISION...

ANTONY EDGAR (CA in Practice) (89 Points)
Replied 20 November 2014

No you will not be liable to pay Rs.5,000/- as penalty since the penalty under section 271F will be applicable only if you fail to file your return before the end of the assessment year. (i.e before 31st march, 2015). Hence, if you file your return today there will not be any penalty u/s 271F.

Thanks & Regards,

Antony Edgar

umesh (Student CA Final ) (147 Points)
Replied 20 November 2014

AGREE WID U ANTONY EDGAR...IT WAS MY MISTAKE REGARDING THE DATE....its falling within the 1 year with the end of relevant assessment year..

CA Vap Patel (Practice) (1205 Points)
Replied 20 November 2014

Dear Antony Edgar,

End of relevant assessment year in this case is 31.03.2014 and not 31.03.2015.

As per Section 271F

"If person who is required to furnish a return of his income, as required under subsection (1) of section 139 or by the provisos to that sub section, fails to furnish such return before the end of the relevant assessment year (Which in this case is 31.03.2014), the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of five thousand rupees.

So by reviewing this section carefully, your answer will be as follows.

1) Since your total income does not exceed basic exemption limit, hence you are not required to file return, but still even if you want to file, then penalty u/s 271F cannot be imposable as you are not required to file return.

2) Even if you’re total income exceed basic exemption limit, still whether to charge penalty or not is upon AO. It is his discretionary power as word "may" is used in section. So even if he charged penalty (in case total income exceed basic limit) still you can make penalty waiver application if you have reasonable cause for delay.

Ajeet Singh (Service ) (190 Points)
Replied 20 November 2014

lnterest U/s. 234A ? If the tax has not been paid before the end of the tax year concerned and you file the return late, incremental interest at the rate of 1% per month will be payable on the unpaid amount after the due date. This is in addition to the 1% per month interest for non-payment of advance tax, that is, tax due after tax deduction at source exceeding Rs 10,000. if you have a net income tax payable and / or if you have losses to be carried forward. This can really hurt especially if the losses to be carried forward are significant.