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Filing of Return for FY 07-08 and penalty

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Sujit Talukder

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493 Points Posted on 13 July 2009

Mr A is a salaried employee and have only Income under the head Salaries. For the Fin. yr. 2007-08 (Asstt. Yr. 2008-09) Mr A has not filed Income Tax Return (ITR- 1). The company hasd educted TDS for Rs 4,000/-. But the actual Tax liability comes to Rs. 1500/-.
Now He wansts to file Income tax return for Fin Yr 2007-08 and Fin 2008-09. This will be his first return and he has never filed return before.

Now my query is: Whether it is advisable that Mr A should file retuen for Fin Yr 2007-08< Whether penalty will be imposed? If yes, whether penalty has be paid before filing of return or file the return for FY 07-08 without penalty? If filed without penalty, whether dept. can demand penalty later on?
OR, he should ignore the return for FY 07-08 and file his return for FY 08-09 as first return?

regards
Sujit

Replies (1)

Guest

Posted on 13 July 2009

Hi Sujit,

To get refund of excess tax paid Mr. A need to file return for the AY 2008-09, he has to file belated return u/s 139(4) within 1 yr from the end of relevent AY. Penalty shall be imposed u/s 271F of Rs. 5,000 but no penalty shall be imposed if Assessee show reasonable cause of such failure to Assessing officer u/s 273B.

File the return without penalty and then wait for penalty order if you are lucky you might not get one!

Yupp Mr. A can ignore it and file next year return as first return. If AO sends an order then he has to file return of earlier year.