My friend is working in a software company. He got salary of Rs. 4,00,000 P.A in the F.y 2010-11. Even though his salary exceeds maxamimum amount of salary which is not taxable, his employer not deducted the TDS and not filed returns. Now my query is 1. whether my friend can pay tax on his salary and file returns now. 2. Whether penalty and interest attracted ? If yes he need to pay the tax along with interest and penalty now?
29 August 2012
If your friend pays the taxable amount before due date, then there will be no interest. If the due date exceeds then there will be interest of 1 % p.m.
29 August 2012
Yes, your friend can file belated IT return by paying tax along with applicable interest and penalty as under:
Penalty: If a person who is required to furnish a return of his income, as required under sub-section (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, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of five thousand rupees
Interest u/s 234A, 234B & 234C: If there is tax due after deducting advance tax ,TDS and self assessment tax than interest will be applicable @1% per month and part thereof up to the date of filing of the return besides interest applicable u/s 234B or 234C.Means this interest is applicable only if there is any tax payable in your return
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