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Penalty u/s 271F

Deepa Joshi (Partner) (57 Points)

26 May 2010  

If an assessee fails to file Return by the end of the relevant assessment year, does in all cases he has to pay  the penalty u/s 271F or are there any exceptions if his income is more than the exemption limit?


 12 Replies

Jagdish Bhalia (Practicing CA) (453 Points)
Replied 26 May 2010

Dear Deepa

As per section 271 F If a person who is required to furnish a return of his income, as required by section 139(1) of the Income Tax Act , fails to furnish such return before the end of the relevant assessment year, the A.O. may direct that such person shall pay, by way of penalty, a sum of Rs. 5000/-.

Penalty 271 F is not mandatory in nature. If the A.O. is satisfied that there are a genuine reason than penalty would not be leveid by A.O.

2 Like

Shudhanshu Agrawal (Business) (2570 Points)
Replied 26 May 2010

Originally posted by : Jagdish Bhalia

Dear Deepa

As per section 271 F If a person who is required to furnish a return of his income, as required by section 139(1) of the Income Tax Act , fails to furnish such return before the end of the relevant assessment year, the A.O. may direct that such person shall pay, by way of penalty, a sum of Rs. 5000/-.

Penalty 271 F is not mandatory in nature. If the A.O. is satisfied that there are a genuine reason than penalty would not be leveid by A.O.

 I am agree with him and generally penalty under this section is levied when there is a tax liability of the assessee.

1 Like

GAURAV AGARWAL (CA FINAL) (76 Points)
Replied 26 May 2010

only when their is tax payable in the return or when u r claiming any refund of excess tax paid,then only penalty u/s 271F can be leviable by AO.

Shivish Verma (C A) (376 Points)
Replied 26 May 2010

Hi to All

Practically, this penalty is levied only when there is any tax payable. if no tax liability, AO never takes pain of leviyng penalty.

Bala (Student) (478 Points)
Replied 26 May 2010

If no tax liability, the AO generally dont levy penalty..

santhosh (Student) (1174 Points)
Replied 26 May 2010

i agree with above answers......

CA Ghanshyam Joshi (CA, Dip IFR (ACCA UK)) (3229 Points)
Replied 27 May 2010

Extract from ICAI study module for Final New Course DT Vol II AY 2010-11 ==> Page 25.20

6. Can penalty be levied where a return is filed belatedly under section 139(4)?

Answer
6. Penalty is attracted under section 271F for failure to furnish return of income as required under section 139(1) before the end of the relevant assessment year. The time allowed for filing a belated return is up to one year from the end of the relevant assessment year or before the completion of assessment, whichever is earlier. If the belated return under section 139(4) is filed before the end of the relevant assessment year, penalty under section 271F is not attracted. However, if the same is filed after the end of the relevant assessment year, penalty under section 271F is attracted.

vipin maurya (CA CPT) (34 Points)
Replied 02 March 2011

only when their is tax payable in the return or when u r claiming any refund of excess tax paid,then only penalty u/s 271F can be leviable by AO.

garvit bharti (CA FINAL) (370 Points)
Replied 11 March 2014

one of my client has not filed ITR for ay 2010-11. He had earned income from salary and insurance commision. AND the TDS was deducted on salary and commision.

ON scrutiny i noticed that he is falling under bracket 20%.

therfore there is some amount tax payable related to that year.

now please tell me whether penalty will be attracted u/s 271F :(

rahul (B.Com) (23 Points)
Replied 15 November 2018

hi...

One of my relative got a notice u/s 274 read with section 271F for A.Y. 2016-17 for delay in filing return. Return was filed on 16/07/2017. Now they want to levy penalty u/s 217F. Now what to do ? Please reply 

NITIN KHANDALE (4 Points)
Replied 28 June 2019

how to pay online u/s 271 F Penalty Demand

NITIN KHANDALE (4 Points)
Replied 28 June 2019

how to pay penalty demand u/s 271 F


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