Not filing return

Firstly can u let us know why did you pay interest penalty on Rs. 5000 of interest income?

Return is mandatorily to be filed in case your total income without giving effect to deductions under chapter VIA exceeds the maximum amount which is not chargeable to tax.

Penalty on non filing of  income tax return will be levied at Rs.5000/- if the return is not filed before the end of the relevant Assessment year. i.e for A.Y 2012-2013 last date of filing of return without penalty will be 31.03.2013

but interest u/s. 234A will be levied if you file return after the due date.

And you don't need to submit copy of challan anywhere only you have to provide challan details in filing up the ITR.

Thanks for the response.

1. I paid penalty as no TDS had been deducted from that interest income which was from a Savings bank account. I thought the rule to exempt SB interest income < 10,000 from tax only kicks in from next AY. Please confirm if correct.

2. So if I don't submit a return, even if I had paid the dues via challan before July 31st with interest penalty, I would still be charged interest until I file the return? (in addition to the Rs. 5000 fine you mentioned)

Dear Anand Ji

I think you should instead you must visit a Chartered Accountant and discuss your Tax Matters.

Deducting TDS and payment of Penalty if TDS is not deducted in time is to be paid by the payer or deductor and not you.

You will get everything messed up if you don't consult a CA.

Also interest to be paid is calculated till the date of actual filing of return so you cannot pay interest without filing return and you will also be exposed to the risk of best judgement assessment.