Penalty under income Tax Act
This query is : Resolved
20 March 2010
Dear Sir,
I want to know whether filing of income tax return for the A. Y. 2007-08 in the month of March 2010, attracts penalty under any section of the Income Tax Act in the case where the total assessable income after deduction Under Chapter VI A of the Act, is below the exemption limit. & have a T.D.S. to the tune of Rs.9000/- which the assessee wants to claim as a refund.
I want to know whether filing of income tax return for the A. Y. 2007-08 in the month of March 2010, attracts penalty under any section of the Income Tax Act in the case where the total assessable income after deduction Under Chapter VI A of the Act, is below the exemption limit. & have a T.D.S. to the tune of Rs.9000/- which the assessee wants to claim as a refund.
20 March 2010
Income tax return of assessment year 2007-08 is barred by time. So an assessee cannot file it in March 2010 voluntarily.
20 March 2010
Yes agreed. The ITR of A.Y 2007-08 is time barred and could have been filed only upto 31-03-2009 that too with the risk of receiving a notice of penalty u/s 271F.
However if you receive a notice u/s 142(1) for A.Y 2007-08, the return for said A.Y can be filed after 31-03-2009.
However if you receive a notice u/s 142(1) for A.Y 2007-08, the return for said A.Y can be filed after 31-03-2009.
21 March 2010
agree with experts,
for tds refund you have to write a letter to AO regarding TDS refund but you have to explain carefully about non filling of IT Return.
for tds refund you have to write a letter to AO regarding TDS refund but you have to explain carefully about non filling of IT Return.
23 March 2010
In the above case, if the refund is not requried but can the individual file his return for a total income which is below the exemption limit i.e. after deduction of VI A of the Act. without attracting any penalty clause under the Act.
23 March 2010
In the above case, if the refund is not requried but can the individual file his return for a total income which is below the exemption limit i.e. after deduction of VI A of the Act. without attracting any penalty clause under the Act.
10 August 2024
When dealing with the filing of an income tax return for the Assessment Year (AY) 2007-08, there are a few key points to consider regarding penalties under the Income Tax Act, 1961, especially if the income is below the exemption limit and there is TDS involved.
### **Relevant Provisions and Penalties:**
1. **Section 139(1) - Timely Filing of Return:**
- **Deadline for Filing Returns:** For AY 2007-08, the due date for filing the return was generally July 31, 2007. If you file the return after this date, it is considered belated.
- **Penalty for Late Filing:** Under Section 139(1), if the return is filed after the due date, a late fee may apply. However, in this case, the return is being filed in March 2010, which is quite late, and Section 139(1) was applicable to returns filed on or before the due date. For belated returns, the penalties under Section 234F (introduced by Finance Act, 2017) would not apply as this was for AYs from 2018-19 onwards.
2. **Section 271F - Penalty for Failure to Furnish Return:**
- **Applicability:** If the return was not filed by the due date under Section 139(1), Section 271F could apply. This section provides for a penalty of up to ₹5,000 for failure to furnish a return within the time prescribed under Section 139(1).
- **Exceptions:** Since your total income is below the exemption limit and you are not claiming any refund, the penalty for failure to file a return under Section 271F may still be applicable, but if the income is below the threshold and the return is filed, the AO might consider this as a reason to mitigate or possibly waive the penalty.
3. **Section 139(4) - Belated Return:**
- **Filing Belated Return:** Returns can be filed under Section 139(4) even after the due date, but this is considered a belated return. Filing under Section 139(4) does not necessarily avoid penalties under Section 271F if the return is filed after the due date and the penalty for late filing is applicable.
4. **Section 139(5) - Revised Return:**
- **Revised Return:** If there was an error or omission in the originally filed return, a revised return can be filed under Section 139(5). This section allows you to correct errors or omissions in a previously filed return, but this still adheres to deadlines and the applicability of penalties.
### **Key Points for Your Scenario:**
- **Income Below Exemption Limit:** If your total income, after deductions under Chapter VI-A, is below the exemption limit, you are not liable to pay any tax. However, the filing of a belated return can still attract penalties under Section 271F if it was not filed within the prescribed time.
- **Claiming Refund:** Since you have TDS of ₹9,000, which you wish to claim as a refund, filing the return is necessary to get the refund. The penalty for late filing could be applicable despite the refund claim.
- **Filing without Penalty:** If you file the return even though you do not require the refund and your total income is below the exemption limit, you still need to address the belated filing. The penalty under Section 271F for late filing might still apply, but you can explain your situation to the AO, and they might consider it while imposing the penalty.
### **Summary and Advice:**
1. **Filing Late Return:** Yes, a belated return can be filed, but penalties for late filing under Section 271F could apply if filed after the due date.
2. **Penalty Applicability:** The penalty under Section 271F is generally applicable for late filing regardless of whether the income is below the exemption limit.
3. **Consideration for Penalty:** You may submit an explanation along with your return to mitigate the penalty, especially highlighting that your total income is below the exemption limit.
4. **Consult a Tax Professional:** It's advisable to consult a tax professional to navigate the specific provisions applicable and to possibly reduce or negotiate the penalty based on the circumstances.
Filing a belated return and addressing penalties proactively is crucial, and providing a clear explanation can help in dealing with any penalties that may be imposed.
### **Relevant Provisions and Penalties:**
1. **Section 139(1) - Timely Filing of Return:**
- **Deadline for Filing Returns:** For AY 2007-08, the due date for filing the return was generally July 31, 2007. If you file the return after this date, it is considered belated.
- **Penalty for Late Filing:** Under Section 139(1), if the return is filed after the due date, a late fee may apply. However, in this case, the return is being filed in March 2010, which is quite late, and Section 139(1) was applicable to returns filed on or before the due date. For belated returns, the penalties under Section 234F (introduced by Finance Act, 2017) would not apply as this was for AYs from 2018-19 onwards.
2. **Section 271F - Penalty for Failure to Furnish Return:**
- **Applicability:** If the return was not filed by the due date under Section 139(1), Section 271F could apply. This section provides for a penalty of up to ₹5,000 for failure to furnish a return within the time prescribed under Section 139(1).
- **Exceptions:** Since your total income is below the exemption limit and you are not claiming any refund, the penalty for failure to file a return under Section 271F may still be applicable, but if the income is below the threshold and the return is filed, the AO might consider this as a reason to mitigate or possibly waive the penalty.
3. **Section 139(4) - Belated Return:**
- **Filing Belated Return:** Returns can be filed under Section 139(4) even after the due date, but this is considered a belated return. Filing under Section 139(4) does not necessarily avoid penalties under Section 271F if the return is filed after the due date and the penalty for late filing is applicable.
4. **Section 139(5) - Revised Return:**
- **Revised Return:** If there was an error or omission in the originally filed return, a revised return can be filed under Section 139(5). This section allows you to correct errors or omissions in a previously filed return, but this still adheres to deadlines and the applicability of penalties.
### **Key Points for Your Scenario:**
- **Income Below Exemption Limit:** If your total income, after deductions under Chapter VI-A, is below the exemption limit, you are not liable to pay any tax. However, the filing of a belated return can still attract penalties under Section 271F if it was not filed within the prescribed time.
- **Claiming Refund:** Since you have TDS of ₹9,000, which you wish to claim as a refund, filing the return is necessary to get the refund. The penalty for late filing could be applicable despite the refund claim.
- **Filing without Penalty:** If you file the return even though you do not require the refund and your total income is below the exemption limit, you still need to address the belated filing. The penalty under Section 271F for late filing might still apply, but you can explain your situation to the AO, and they might consider it while imposing the penalty.
### **Summary and Advice:**
1. **Filing Late Return:** Yes, a belated return can be filed, but penalties for late filing under Section 271F could apply if filed after the due date.
2. **Penalty Applicability:** The penalty under Section 271F is generally applicable for late filing regardless of whether the income is below the exemption limit.
3. **Consideration for Penalty:** You may submit an explanation along with your return to mitigate the penalty, especially highlighting that your total income is below the exemption limit.
4. **Consult a Tax Professional:** It's advisable to consult a tax professional to navigate the specific provisions applicable and to possibly reduce or negotiate the penalty based on the circumstances.
Filing a belated return and addressing penalties proactively is crucial, and providing a clear explanation can help in dealing with any penalties that may be imposed.
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