Income Tax- Return not filed
Querist :
Anonymous
(Querist) 05 December 2009
This query is : Resolved
One of my friend has not filled income tax return for year 2008-09, he is a salaried employee and TDS was deducted, but even he still need to 10-12K more tax. What should be done in this case?
Raj Kumar Makkad
(Expert) 05 December 2009
No excuse. Such employee has already delayed a long and thus is liable to be fined but still he can file before 31st Dec. 09 to avoid more stringent penalties.
A V Vishal
(Expert) 05 December 2009
Consequences of not Filing or Late Filing of Income Tax Returns
Where the assessee has defaulted in timely furnishing of his return of income, then penal interest is chargeable for Non/Late filing of return.
Interest Calculated by IT Department for Late or Non-Furnishing of Return -
For defaults in furnishing Return of income - Simple interest @ 1.25% for every month orPart of a month from the due date of filing of the Return to the date of furnishing of the return. The interest is calculated on the amount of the tax on the total assessed income as determined under sub-section (1) of section 143 or on regular assessment u/ s 143(3) as reduced by the Advance Tax , if any, paid and any tax deducted or collected at source.
Penalty on not filing IT Returns - Penalty of Rs.5000 is imposable for non-filing of return. Interest is also chargeable for non-filing or late filing.
Tax payers, including individuals, may have to pay a penalty of Rs 5,000 if they do not file returns by the due date or by the end of the assessment year. If they do not file by either deadline they will be issued a notice by the department and non-compliance will mean additional penalties of Rs 10,000.
The same penalty follows for non payment of tax dues within time viz interest is charged u/s 234 B & 234 C of the said act.
CS Bhagwati charan
(Expert) 05 December 2009
Dear friend u can filled belated return upto 31st march 2010 with balance amount of tax liability with intrest.
Querist :
Anonymous
(Querist) 05 December 2009
How much interest should be paid?
Vineet
(Expert) 05 December 2009
I agree with Mr Bhagwati Charan. A belated return can be filed upto 31st March 2010 and the same may attract penalty of Rs 5000 u/s 271F of the act. No other penalty is leviable if return is filed by that date.
The interest u/s 234A for delay in filing of return from due date till date of payment of self assessment tax, 234B for non payment of advance tax from 1-4-2008 till date of filing of return and 234C for deferment of payment of advance tax shall be payable extra in addition to balance tax payable.
pkpworld..
(Expert) 06 December 2009
Your friend is a non filer of income tax return, consequences are :
1. Liable to pay penalty u/s 271F of Rs.5000.
2. Best judgement assessment can be made by ITO u/s 144.
3. Prosecution u/s 276CC, If the amount of tax evasion is Rs.10k or Rs.12k, the prosectuion punishmet is minimum 3 months maximum 3 years rigorous imprisonment with fine.
But still there is time to avoid this punihsment.
Let advise to your freind to file return by 31/03/2010.
After all late filing is a common practice in India, No problem.
