LAST YEAR RETURN WITH AND WITHOUT LIABITITY TO TAX

It is mandatory to file a return of income where the Gross Total Income exceeds the basic exemption limit. In your case if you dont file the return for AY 08-09, the department may issue a notice to file the return. Its better to file the return before issuence of a notice. Secondly, Penlaty is not payable before filing the return. Before imposing the penalty, Show cause notice is required to be issued. If you can justify the reason for non filing, the penalty may not be imposed. Hence, in any case, go & file the return first.

Ur return for A.Y. 08-09 should have been filed by 31st july 2008 / 30th september 2008 as the case may be, but it could have been further be filed upto 31 march 2009 without any penalty. But after that, it can still be filed u/s 139(4) [belated return] upto 31st March 2010.

but the A.O. may pass a penalty order u/s 271F for late filing of the return unless u give genuine reason for non-filing of return.........

what u need to do just now is to file the return by 31st March 2010 u/s 139(4)..........with the amount of interest u/s234A/B/C..........

As for penalty, it is paid only on the order of the A.O and not by the assess on its own......After u will file the return, the A.O. shall do 143(1) and shall initiate penalty proceedings by sending u notice. their u can give reasons for ur failure.......after that if the reasons he find not holding water, may pass order u/s 271F..........

i hope u have got  a lowdown about it.......?.....

When the liabilty is less than 5000 the interest under section 234 B and C is nil. is it true?

Your view can be cited this way......

since the fine u/s 234B and 234C related to advance tax and since advance tax is payble only if the tax payable(after TDS and relief) comes out to be more than Rs.5000/- only........so u can say that..................