Sahil Dhingra
Quick Summary
Fee or Penalty for the Default in the Filing of Return of Income (Individual)
Section 234F
Section 270A
- Penalty is 50% of Tax Payable on under-reported Income.
- Under-Reported Income means:
In a case where Income has been assessed for the first time
- If Return not furnished, the difference between the amount of income assessed and the maximum amount not chargeable to tax.
- If Return has been furnished, the difference between the amount of income assessed and the amount of income determined under clause (a) of sub-section (1) of section 143;
In a case where Income has been already assessed
- The difference between the amount of income reassessed or recomputed and the amount of income assessed, reassessed or recomputed in a preceding order.
Section 276CC
Wilfully fail to furnish Return of Income, and
- If evaded amount of Tax > 25 lakhs then rigorous imprisonment from 6 months to seven years with fine.
- If evaded amount of Tax ≤ 25 lakhs then rigorous imprisonment from 3 months to two years with fine.
No prosecution If,
- Return is furnished by him before expiry of assessment year, or
- Tax Payable upto Rs 10,000.
FAQ :
Failure to file your Income Tax Return (ITR) on time can lead to penalties under Section 234F and Section 270A of the Income Tax Act.
Section 270A imposes a penalty of 50% of the tax payable on under-reported income.
Under-reported income is defined as the difference between the assessed income and the maximum amount not chargeable to tax if the return was not furnished, or the difference between assessed income and determined income if the return was furnished.
Yes, under Section 276CC, wilfully failing to furnish your Return of Income can lead to rigorous imprisonment ranging from 6 months to seven years with a fine, especially if the evaded tax amount exceeds £25,000.
Prosecution may not apply if the return is furnished before the expiry of the assessment year or if the tax payable is up to £10,000.
CAclubindia
