Penalty for belated return filing

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This query is : Resolved

Hardik Chechani (Querist)

18 November 2014 If a new assessee u/s 139(1) fails to furnish Return of Income on or before due date, then such Assessee have to pay Rs. 5000 as Penalty? Is it correct?

Amol S Joglekar

Amol S Joglekar (Expert)

18 November 2014 Let the assessee wait till he receives the notice, if any, from the income tax department. Although this provision is a time old provision, the income tax department is NOT using it sparingly.

Hardik Chechani

Hardik Chechani (Querist)

18 November 2014 And if such new assessee does not have minimum income chargeable to tax, do then also he will be attracted to penalty of Rs. 5000/-?

Amol S Joglekar

Amol S Joglekar (Expert)

18 November 2014 Then why are you saying FAILS to furnish?
He is NOT duty bound to submit the return under section 139(1, since income is below taxable limit.???????

Hardik Chechani

Hardik Chechani (Querist)

18 November 2014 Yes. He is not bound to furnish his return, but if he wants to voluntarily furnish his belated return, then what are the consequences?

Amol S Joglekar

Amol S Joglekar (Expert)

18 November 2014 There is a very good provision in the Act for the benefits of Assessing Officers....it says, the return of income declaring income which is below taxable limit, except loss return, shall be deemed to have never been filed.
So? No penalty can be levied for such a return.

Hardik Chechani

Hardik Chechani (Querist)

18 November 2014 Ok. It means that such an assessee can file his return (whether normal or belated) up to end of next assessment year without any penalty.
Thank You Sir.

Hardik Chechani

Hardik Chechani (Querist)

18 November 2014 Ok. It means that such an assessee can file his return (whether normal or belated) up to end of next assessment year without any penalty.
Thank You Sir.

Amol S Joglekar

Amol S Joglekar (Expert)

18 November 2014 Yes, definitely the assessee can file within a period of one year from the end of the assessment year