Nil Return

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Krishna (Querist)
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09 September 2010 Dear Sir,

What is the interest and penalty for ITR Nil of financial year 2009-10 ??

Thanks & Rgds,
Krishna

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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09 September 2010 No interest or penalty for filing NIL belated return u/s 139(4) till 31.03.2011.
After that penalty of Rs.5000/-.

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CA Shiv

CA Shiv (Expert)
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09 September 2010 There is no penalty for NIl return at all.. even after the end of the A.Y.

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CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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09 September 2010 AGREED WITH EXPERTS.
BELATED RETURN U/S 139(4) CAN BE FILED UPTO END OF ONE YEAR FROM THE DATE OF RELEVANT ASSESSMENT YEAR I.E YOU CAN FILE IT UPTO 31/03/2012.
BUT IF YOU FILE IT UPTO 31/03/2011 THEN NO PENALTY,
IF YOU FILE IT AFTER 31/03/2011 BEFORE 31/03/2012 THEN AO CAN IMPOSE PENALTY OF RS. 5000/-

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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09 September 2010 Dear Shivang,

Please check sec 271F.

271F. 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.

Source: https://law.incometaxindia.gov.in/DitTaxmann/IncomeTaxActs/2005ITAct/section271f.htm
Regards

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CA Shiv

CA Shiv (Expert)
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09 September 2010 Thanks Sanjay sir,

But the question is of Nil return and so he is not mandatory liable to file return under section 139(1). So 271F is not applicable...

The assessee,in this case,being an individual, is not required to file return under section 139(1) mandatorily ( considering NIL TAX)
Since 139(1) is not applicable to the assessee, penalty cannot be imposed under section 271F.

Pls correct me if i am wrong...

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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09 September 2010 Though 139(1) is not applicable if you file return after the stipulated date the AO can impose penalty of Rs 5000/-.

https://www.incometaxindia.gov.in/publications/1_Compute_Your_Salary_Income/6_others.asp#Is%20there%20any%20penalty%20for%20non-filing%20of%20return%20under%20this%20scheme

See 6 no question on above link.

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CMA Arif Farooqui

CMA Arif Farooqui (Expert)
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09 September 2010 i agree with Sanjay & Bajender.

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mohinder kansal

mohinder kansal (Expert)
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09 September 2010 Is there any penalty for non-filing of return under this scheme?

Yes. In case the return of income is not furnished, although required on the basis of above indicators, the assessee could be fined Rs.5000.

Q 6 is as above, which also explain that if assessee is required to file return u/s 139, and not file till the end of assessment year, then penalty can be imposed, otherwise if income before claiming deduction u/s 80C is below taxable limit, penalty can not be imposed by the AO.

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