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Penalty on non submission of ITR for FY 2020-21.

Rahul (Mr) (54 Points)

13 March 2022

Hi All,

My friend's income is low and his total tax for FY 2020-21 after calculation came as 0 Rs. So, he doesn't have to pay any taxes. He didn't submit ITR for that FY. He had submitted for FY 2019-20 though(no tax paid for that year as well). I heard that there is some penalty for people who didn't submit their ITR by 31 Dec 2021.

Does this penalty applies to my friend as well?
If yes, how much is the penalty? Is there any way that he doesn't have to pay it since his tax is 0 Rs in first place.
Does the penalty increases with further delay in submission of ITR?

Thanks in advance!

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12 Replies

Eswar Reddy S (CFO- at NHTF) (58213 Points)
Replied 13 March 2022

Late Fees under section 234F is not applicable.

Even section 234A To 234C interests also not applicable.

You may skip the ITR Filing since the income is below tax exemption limit

4 Like

CA. Abhilash Krishnan P (Chartered Accountant) (529 Points)
Replied 13 March 2022

As eswar said there's no penalty for income below 2,50000 and it is optional to submit ITR..no need to worry

2 Like

sabyasachi mukherjee (26219 Points)
Replied 14 March 2022

The querist has mentioned income as 0

Eswar Reddy S (CFO- at NHTF) (58213 Points)
Replied 14 March 2022

Late Fees under section 234F is not applicable.

Even section 234A To 234C interests also not applicable.

You may skip the ITR Filing since the income is below tax exemption limit

Answer is already given considering major aspects given..

@ Sabyasachi Mukherjee

In what way , your answer resolve above query

2 Like

Rahul (Mr) (54 Points)
Replied 15 March 2022

Hi Eshwar,

Thanks for your reply!

My friend's total income is Rs 286387
It's above the exemption limit of 250000. However, tax calculation, payable is Rs 0 after calculation.
Does any penalty applies if total income is above basic exemption limit?

Rahul (Mr) (54 Points)
Replied 15 March 2022

Thanks Abhilash for your reply!

Does any penalty applies if total income is above basic exemption limit?

CA Puja Sharma (Chartered Accountant) (4891 Points)
Replied 15 March 2022

If the Gross Total Income is above the basic exemption limit of Rs. 2,50,000 then you are liable to file your ITR.

In the above case you have mentioned Total Income of Rs. 2.86 LAcs which is above the threshold limit of Rs. 2,50,000

Penalty: 50% of the total tax payable on the income for which no return was furnished. However, in your case, that will come as nil

Further, there is a prosecution provision also applicable in some cases for non filing of IT return,

Samantha J (1236 Points)
Replied 19 March 2022

These days issue of notice is rampant .To avoid it always file ITR if you have filed it even once earlier and even if currently income is less than basic exemption limit.

Eswar Reddy S (CFO- at NHTF) (58213 Points)
Replied 19 March 2022

ITR Filing has its own advantages, if it's not a compliance burden then you may go for ITR Filing.Else you can skip it since income is below BEL

debora M (BUSINESS DEVELOPMENT MANAGER) (1697 Points)
Replied 05 May 2022

The Income Tax department could charge a penalty of up to 50% under Section 270 of the Income Tax Act of 1961. Apart from the 50% fine, taxpayers will be required to pay interest on the amount for the number of days till the date of filing ITR.

debora M (BUSINESS DEVELOPMENT MANAGER) (1697 Points)
Replied 09 May 2022

Under the Income-tax Law, there are four major assessments given below: Assessment under section 143(1), i.e., Summary assessment without calling the assessee. Assessment under section 143(3), i.e., Scrutiny assessment. Assessment under section 144, i.e., Best judgment assessment.