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Delay in Income Tax Filing Will Lead to Heavy Penalty

3/16/2017
1
Delay in Income Tax Filing Will Lead to Heavy Penalty

The Indian government is taking many initiatives to ensure the higher volume of tax return filing by the coming assessment years. One of the notable initiatives taken is increasing the penalty rate for non-filing income tax return or delayed return filing. In finance Bill 2017, it has proposed that anyone who fails to file income tax return by the due date have to pay a penalty which can be up to INR 10,000. But, this penalty for late income tax filing will be affected from the upcoming assessment year which is 2018-19. The Income Tax Deductions You Can Avail Before It is Too Late.

Any person who is required to file income tax under sub-section (1) of section 139, have to pay penalty fees of INR 5,000 if the due income tax has been filed within December 31st of the assessment year. If this category of taxpayers delays tax return filing further, then they have to pay a penalty of INR 10,000. This amendment will be introduced under Section 234F which will be soon inserted into the Income Tax Act. However, the penalty amount will not exceed INR 1,000 for the small taxpayers who earn less than INR 5 lakhs a year.

This new income tax filing rules will be in effect from 1st April 2018. So, let's see the taxpayer types that fall under the category described in Sub-section (1) of Section 139.

The taxpayer defined in Sub-section (1) of Section 139:

  • Any company or business firm fall under this category.
  • Any individual who exceed the minimum tax-exempt limit

The new definition for “Due Date” of tax return filing under Section 139(1):

  • Any company except the ones referred in clause (aa).
  • Any individual whose income need to be audited under this act.
  • Any individual whose income need to be audited under any other act for the time-being.
  • Any working partner of a firm, whose income need to be audited by 30th September of the AY, under this act or any other act for the time-being.
  • 31st October for any individual referred in the first provision of this sub-section.
  • 31st July of the AY, for other individual required to do income tax filing.

This initiative has been taken purely to achieve the higher tax filing target in India and filing return by due dates is necessary for that. The Income Tax Slab Changes Announced In Union Budget 2017. And the reduced time limit for making a decision on assessment will also contribute to the higher tax return filing volume by prescribed due dates.

Educational Institutions to enjoy Service Tax Exemption from 1st April

Service tax is levied by the Government of India on certain service providers for certain services and it is collected by the service provider who later submits it to the Government. It is a type of indirect tax that a service receiver pays for receiving those services. However,

3/15/2017
1
Government Appoints Amitabh Bachchan to Promote GST

Ahead of Goods and Services Tax (GST) rollout, the government has roped in Bollywood megastar Amitabh Bachchan to promote it. The goods and services tax will be implemented from July 1.

The Central Board of Direct Taxes will appoint this legendary actor as the brand ambassador of GST. A

6/19/2017
How to save taxes on investment via children

Most taxpayers are looking for indirect methods to save taxes. Investing in one’s own assets in your own name will make you liable to more taxes and increase the tax bracket. One way out to save taxes is by investing on children and parents. Investing in your children’s name or parent

6/2/2017

CATEGORIES

  • Taxation
  • GST
  • PAN
  • TDS
  • ITR
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  • Finance

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