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Querist : Anonymous (Querist)

20 November 2013 If any Company files the Income tax return late then what will be the penalty a company has to bear.

CA Parul Saxena

CA Parul Saxena (Expert)
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20 November 2013 Interest to be paid under section 234A, loss will not be carried forward and penalty of Rs.5000 may be levied by the assessing officer.

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CA Pallav Singhania

CA Pallav Singhania (Expert)
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20 November 2013 Impact of late filing of Income tax return and issue related to due date(The List is not exhaustive/complete)

1. 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)

2. 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.

3. 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 30.09.2013.E filing of audit report s mandatory from ay 2013-14

4. 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 not revise your income tax return. Though you may apply revision u/s154 but it has few limitation and very lengthy process

5. Due date of income tax return is related to TDS deposit and dis allowance u/s 40a(ia).

6. 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

Speculation loss
business loss excluding loss due to un absorbed depreciation and capital exp on scientific research
short term capital loss
long term capital loss
loss due to owning and maint. of horse races

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