Rush hour in the month of July because 31st July is the last date to file income Tax Return for Asstt. Year 2013-14 and after the declaration of Income Tax Department that the salaried Employee whose income less than Rs. 5 Lakh is compulsory to file Income Tax as well as whose income exceed Rs. 5 Lakhs they are file income Tax Return by e-filing procedure.
Normally Taxpayee believe (specially Salaried Employee) that after due date of filing of income tax return i.e. 31st July, 2013 Income Tax Department charged more penalty and interest and other consequences i.e. notices and compliance etc. Salaried Employee (Assessee) did not want to face all these circumstances, hence they rush to Tax consultant.
Do you know what are the penalties, if not filed the Income Tax Return in due date i.e. on or before 31st July, 2013.
Any idea .........
No ........ Don't worry, we will tell you, there is no any sigle pie penalty on such fault, absolutely no penalty, do you believe, we have said that there is no penalty on late filing of return as such.But this is the fact .Specific penalty for late filing of return is prescribed u/s 271F which is clarified as under:
“If a person who is required to furnish a return of his income, as required under sub-section (1) of section 139 or by the provisos to that sub-section, fails to furnish such return before the end of the relevant assessment year, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of five thousand rupees"
Impact of Late filing of Income Tax Return:
Normally Taxpayee believe (specially Salaried Employee) that after due date of filing of income tax return i.e. 31st July, 2013 Income Tax Department charged more penalty and interest and other consequences i.e. notices and compliance etc. Salaried Employee (Assessee) did not want to face all these circumstances, hence they rush to Tax consultant.
Do you know what are the penalties, if not filed the Income Tax Return in due date i.e. on or before 31st July, 2013.
Any idea .........
No ........ Don't worry, we will tell you, there is no any sigle pie penalty on such fault, absolutely no penalty, do you believe, we have said that there is no penalty on late filing of return as such.But this is the fact .Specific penalty for late filing of return is prescribed u/s 271F which is clarified as under:
“If a person who is required to furnish a return of his income, as required under sub-section (1) of section 139 or by the provisos to that sub-section, fails to furnish such return before the end of the relevant assessment year, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of five thousand rupees"
Impact of Late filing of Income Tax Return:
Due to late filing of Income Tax
Return may effect on Interest u/s 234A, Loss of Interest on Retund,
Audit Report and Revised Return etc. Therefore, taxpayee request you to
avoid all impact of late filing of Income Tax Return for Assessment year
2012-13
Interest u/s 234A:
If there is tax due after deducting advance tax ,TDS and self assessment tax than interest will be applicable @1% per month and part thereof up to the date of filing of the return besides interest applicable u/s 234B or 234C.Means this interest is applicable only if there is any tax payable in your return .(INTEREST calculator 234BC online is available here)
Loss of Interest on refund:
You may loose interest on refund u/s 244A as delay in filing is attributable to assessee for the period by which you have filed late return.
Audit Report:
Person who are liable to get their accounts audited should get the audit report on or before the due date of filing return i.e 30.09.2012.Audit repot is only to be prepared and not to be filed any where.In simple word or boldly we can say that if audit report has been signed before 30.09.2011 that is enough,you can file return late and report particulars will be filled when ever you filed your income tax return.This is as income tax circular no 5/2007 point no 6 (read full circular)
Revised return :
Late /belated return can not be revised .This is major draw back .if you failed to file return in time then you can revise your income tax return. Though you may apply revision u/s154 which is lenghty process
Interest u/s 234A:
If there is tax due after deducting advance tax ,TDS and self assessment tax than interest will be applicable @1% per month and part thereof up to the date of filing of the return besides interest applicable u/s 234B or 234C.Means this interest is applicable only if there is any tax payable in your return .(INTEREST calculator 234BC online is available here)
Loss of Interest on refund:
You may loose interest on refund u/s 244A as delay in filing is attributable to assessee for the period by which you have filed late return.
Audit Report:
Person who are liable to get their accounts audited should get the audit report on or before the due date of filing return i.e 30.09.2012.Audit repot is only to be prepared and not to be filed any where.In simple word or boldly we can say that if audit report has been signed before 30.09.2011 that is enough,you can file return late and report particulars will be filled when ever you filed your income tax return.This is as income tax circular no 5/2007 point no 6 (read full circular)
Revised return :
Late /belated return can not be revised .This is major draw back .if you failed to file return in time then you can revise your income tax return. Though you may apply revision u/s154 which is lenghty process
- Some of deduction under subsection 80 are not available for late return.
- Due date of income tax return is related to TDS deposite and disallowance u/s 40a(ia).
- Due date of Income Tax return is related to tax saving u/s 54,54B,54F and some other issues in capital gain saving account deposit scheme.
- Not able to carry forward the losses under various heads:you are not able to carry forward following type of losses if file return after due date
