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IT RETURN PENALTY

ITR 903 views 2 replies

CA Sudhir Halakhandi

PRACTICING CHARTERED ACCOUNTANT

13401 Points Joined November 2008

Every year on 31^st. July an advertisement is appeared in most of the News papers for Income tax assesses to file their IT returns otherwise they will be penalized by Rs. 5000.00 under section 271F though the penalty of Rs.5000.00 is applicable if the return is not filed up to 31^st. March.

Is this practice of advertising about a non-existing penalty is justified?

- CA SUDHIR HALAKHADI

Replies (2)

Jagdish Bhalia

Practicing CA

453 Points Joined January 2009

Penalty u/s 271(F) may be levied by the ITO if ITR filed after 31st March. If the ITR files after 31st July but before 31st March then ITR will be treated as belated return u/s 139(4) of the I T Act, 1961 and Assessee have to pay interest on tax u/s 234(A). Belated return can not be revised and loss can not be brought forward.