Partnership Income Tax return

Your query is not cleared dear...!

Can Elobrate with correct details...?!

1.Consequnces of delayed/ non-filing of Income-tax return.

As per section 139(1) of the Act, every partnership firm is Liable to file Return Of income regardless of the level of income earned.

Late filing of income tax return will attract a late fees u/s 234F max of Rs. 10,000.

Further, late filing of return will attract other consequences such as :

i. losses will not be carried forward or set off
ii. refund if any, shall not be granted
iii. The income tax officer can initiate proceedings for prosecution for a term of 3 months to 2 years and with fine if you don’t file your ITR. If the tax you owe exceeds Rs. 25 lakh, the period may extend to 7 years.
iv.The proceedings shall not be initiated where the net tax payable does not exceed Rs. 3000.
v. Further, the income tax officer may impose a penalty of up to 50% of the tax due in the case of under-reporting of income.
vi. Apart from the penalty for late filing, interest under section 234A at 1% per month or part thereof will be charged till the date of payment of taxes.

2. Consequences of not doing tax audit

A taxpayer is required to do tax audit if the income from business exceeds Rs.1 Cr. and in case of profession Rs. 50 lacs in a previous year.

If a taxpayer who is required to obtain tax audit does not get the accounts audited, then penalty could be levied under Section 271B of the Income Tax Act. The penalty for not completing tax audit is 0.5% of the turnover or gross receipts, subject to a maximum of Rs.1,50,000.

If a taxpayer who is required to obtain the tax audit report but they fail to do so will be penalized. The defaulters of the tax audit report will be penalized under the Section 271B of the Income Tax Act. The penalty for non-completion of the tax audit report is 0.5% of the turnover or the gross receipts, this penalty amount is subject to a maximum of ₹ 1,50,000. Effective from the financial year 2017-18, a late filing fee will be applicable for filing your returns after the due date i.e. 31 August 2019 under section 234F. The maximum penalty is Rs. 10,000. If you file your ITR after the due date (31 August) but before 31 December, a penalty of Rs 5000 will be levied. For returns filed later than 31 December 2019, the penalty levied will be increased to Rs.10,000. There is a relief given to small taxpayers – the IT department has stated that if the total income does not exceed Rs 5 lakh, the maximum penalty levied for delay will be Rs 1000.