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CA Ankit Mittal (Charterd Accountant) (118 Points)

11 August 2011

Hello everyone, I want to e-file an ITR of my friend's father for A/Y 2010-11. The problem is TDS was deducted from commission income earned by him during the previous year which is approx. Rs. 9000/-. Now if I e-file his return would section 271F be attracted even if I show that his Gross Total Income was below Rs. 1,60,000/-?

I consulted with my freind and he says that the Deptt. would levy penalty as TDS was deducted. but my contention is that penalty can't be levied as his GTI is below Rs. 1,60,000/- and there was no obligation on his part to file the return u/s 139(1).

Please help. If anyone has personal experience in this regard it'd be of great help.

Thank You

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5 Replies

Sanat kumar (Chartered Accountant) (265 Points)
Replied 12 August 2011

Hi Ankit

I think, penalty u/s 271F will be applicable only if when an assessee (required to file return u/s 139(1), fails to furnish his return before the end of Relevant AY.

Individuals required to file return u/s 139(1): If TY during that PY exceeds the maximum amount not chageable to income tax.

In this case, since the TY is below the Slab limit, so he is not required to compulsorily file his return. So penalty u/s 271 F will not be applicable.

CA Kumar Mukesh (CA CMA FINAL and Advance Excel Trainer) (6871 Points)
Replied 12 August 2011

penalty under Section 271F for Rs. 5000/ is depent upon A. O. he may or may not Impose Penalty

you should file ITR for AY 2010-11 before 31st march 2012

CA Ankit Mittal (Charterd Accountant) (118 Points)
Replied 13 August 2011

I know that ITR has to be filed before 31st March 2012 for A/Y 2010-11 ot it gets time barred.

Thanks Sanat I too think that penalty can't be imposed- TDS or no TDS- if the GTI is below Rs. 1,60,000. But if deptt levies it anyway, what do I do then? Can I file for rectification u/s 154?

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 14 August 2011

penalty u/s 271 is the juridiction of AO, he may impose or not but it can not be calculated and paid by assessee at the time of filing of return.

CA Saiyum khan (Practicing CA) (685 Points)
Replied 14 August 2011

Originally posted by : Ankit Mittal
	I know that ITR has to be filed before 31st March 2012 for A/Y 2010-11 ot it gets time barred. Thanks Sanat I too think that penalty can't be imposed- TDS or no TDS- if the GTI is below1,60,000. But if deptt levies it anyway, what do I do then? Can I file for rectification u/s 154?

Penalty can not be imposed by the assessing officer unless the opportunity of hearing is given. However if in any case penatly is levied which is bad in law can be represented through appeal as it is not error apparant from the record.