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Self assessment tax not paid

rahul (ARTICLE CLERK) (58 Points)

25 January 2020  
can we file ITR without paying Self assessment tax?
if yes then what are the consequences of it?

 7 Replies

CA Kiran Sutrave (CA) (424 Points)
Replied 25 January 2020

It is a defective return. It is similar to non-filing of tax return

CA SANDESH MAHIPAL (Practicing in GST and MSME )   (1445 Points)
Replied 25 January 2020

As per my view, If you file return without payment of taxes, your return will be processed but you will be issued a notice for non/short payment of tax.
Let's see what other experts suggest.

rama krishnan (11163 Points)
Replied 25 January 2020

I fully agree with Mr kirans view

RAJA P M ("Do the Right Thing...!!!")   (115460 Points)
Replied 25 January 2020

Demand notice will be issue by Dept...

rahul (ARTICLE CLERK) (58 Points)
Replied 25 January 2020

How much penalty will levied if self assessment tax is not paid before ITR filing

CA Kiran Sutrave (CA) (424 Points)
Replied 25 January 2020

As per Section 140A(1) of Income Tax Act, if the tax payer fails to pay either wholly or partly self-assessment tax or interest then the tax payer will be treated as a defaulter. As per Section 221(1), a defaulter may be charged with penalty by the assessing officer. But if you provide justified reasons for the delay in paying the tax then the assessing officer can exempt you from paying penalty.

Kapadia Pravin (17209 Points)
Replied 26 January 2020

As per the erstwhile provisions of the income tax law, filing a tax-payable return was considered as a defective return.

Thus, taxes were required to be paid before filing the return.

With effect from tax year 2016-17, provisions were amended and thus filing of a tax payable return is not considered as a defective return.

However, as per other provisions of the income tax law, if taxes are not paid before filing the return, the assessee will be treated as ‘assessee in default’ and thus may be subject to penal consequences along with interest implications.

Accordingly, if there is any tax payable at return filing stage, the same needs to be paid before filing the tax return;

# Further, if taxes are not paid by the original return filing due date (which is 31 July), a belated return will have to be filed once the taxes are paid. However, filing a belated return can lead to additional consequences like:

a) Additional interest for delay in return filing;

b) Fees of Rs 5,000 will be payable if return is filed on or before 31 December of the relevant Assessment Year (AY) or else the fees will be Rs 10,000. However, if the total income does not exceed Rs 5 lakh, fees payable will be Rs 1,000;

c) Losses (other than House property loss) cannot be carried forward;

d) Certain specified exemptions / deductions will not be available

It is important to note that the due date of filing a belated return is amended with effect from AY 2017-18. Thus a belated return can now be filed by the end of the relevant assessment year or completion of assessment, whichever is earlier (viz – for tax year 2016-17 (i.e. AY 2017-18), the belated return can be filed only up to 31 March, 2018).

Given the gravity of the above complications, it is imperative to prepare tax computation well in advance to project appropriate tax liability. Thus, necessary tax arrangements can be made for payment of taxes before filing the return. Further, payment of timely advance tax during the tax year as per specified installments can save interest costs, which will otherwise be payable at the rate of 1% every month or part of the month. Hence, it is important to keep the tax compliance and related timelines in order, else there could be additional tax, penal and interest consequences.
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