Belted return

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 August 2011 An assessee having gross total income from salary Rs.200,000/- and after deduction u/s 80C his net income Rs.1,40,000/- for the assessment year 2010-11. and Rs. 4,000/- tax deducted from his salary. Now if the assessee file his income tax return after the assessment year for claiming the TDS of Rs. 4000/- then Rs, 5000/- penalty implication on him or not.

CA Shyam Agrawal

CA Shyam Agrawal (Expert)
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06 August 2011 yes he wil be liable for penalty because he is under obligation to file return u/s 139(1)

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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06 August 2011 Yes there is a clause for penalty u/s 271F. Assessing officer can impose a penalty of 5000,and that is also his(AO) power which he may or may not exercise after giving due hearing to the assessee. Max Penalty is Rs 5000/- but since in your case taxable income is well below the slab and TDS was also deducted which you are claiming as refund, dont think any penalty will be imposed on you.

Specific penalty for late filing of return is prescribed u/s 271F which is briefed here under

"if a person failure to furnish return of income as required by section 139 before the end of relevant assessment year ,the assessing officer may impose a penalty of Rs 5000/-"

CA Shyam Agrawal

CA Shyam Agrawal (Expert)
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06 August 2011 sir in this case whether penalty has to be imposed or not is to be decided by AO.so how assesse can be sure that penalty wont be imposed.

PRAMOD PANDIT M.COM , CA FINAL

PRAMOD PANDIT M.COM , CA FINAL (Expert)
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06 August 2011 AO has lot of work other than imposing 5000 penalty!

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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06 August 2011 Yes it is at the discretion of the AO. But practically i have seen many cases like this where penalty is not imposed. Under the facts of the case there is more chances that AO will take a lenient view.

CA Shyam Agrawal

CA Shyam Agrawal (Expert)
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06 August 2011 PRAMOD SHAB IF AO THINKS TO TORTURE ANY ONE THEN YOU WIL FORGET AO'S WORK

YES THERE IS MORE CHANCES AO WIL TAKE LENIENT VIEW BUT ASSESSE HAS TO PREPARE HIMSELF EVEN FOR WORST

CA Manish Agrawal

CA Manish Agrawal (Expert)
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07 August 2011 Nowadays, Income Tax Server Software is filtering DATA regarding defaults made by assessee regarding TDS Deduction.. Department has a power to levy the Penalty.. but Generally it is seen in similar cases that Penalty is not being Levied, because Taxable income in this case is within Thresold limit. In my opinion assessee may go for applying refund, but chances are least to recover something because you were required to file the return latest by 31.03.2011. still, You may take a risk to get refund by applying online uploading of Return mentioning Your Bank A/c No & MICR Code in which you want to get refund.

CA Manish J. Agrawal
{S.T.S., B.Com., C.A., D.I.S.A., D.I.R.M., N.C.F.M.-II, SAP-FICO(e-L), Transfer Pricing (e-L), Service Tax(e-L)}

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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07 August 2011 As per act he is liable for penalty. If he has not received any notice for levying the penalty then no penalty can be levied but if he received the notice then be sure that the penalty will be levied.