Itr-1 a/y 2014-2015 late file penalty

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 August 2014 Dear Sir/mem

one of my friend not file his Taxable ITR-1 Return Tax Amount 2000/-AND NOT PAID TAX TILL TODAY 11.08.2014

How much penalty for Late File ITR A/Y 2014-2015

Nikhil Kaushik

Nikhil Kaushik (Expert)
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11 August 2014 under 234A @ 1% comes to Rs 20.

For 234B and 234C information provided is not sufficient

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Madav

Madav (Expert)
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11 August 2014 Return for AY2014-15 for an Individual whose accounts are not required to be audited under income tax act is required to be filed by Jul 31, 2014.. Since your friend's total Net tax liability determined as 2000/-, he needs to paid interest u/s 234A if he files the return before March 2015.
Computation of interest will be
Net tax liability (after tds, advance tax, tax relief and tax credit)*number of months (Number of months delay to file return starting from due date of filing )/100

in your case considering your friend is going to file the return in August 2014 , interest will be 2000*1/100=20

Since your friend still have opportunity to file return until end of this AY i.e. 31st march,2015 hence Assessing officer can not levy penalty u/s 271F.

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Nikhil Kaushik

Nikhil Kaushik (Expert)
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11 August 2014 Dear Madav,

request you to kindly confirm your computation. 234A interest starts only from the due date of return. In this case only one month interest is applicable if the return is filed in August.

For your convenience, part of section 234A has been reproduced below:

".... liable to pay simple interest at the rate of one per cent for every month or part of a month comprised in the period commencing on the date immediately following the due date, and,—

(a) where the return is furnished after the due date, ending on the date of furnishing of the return; or

(b) where no return has been furnished, ending on the date of completion of the assessment under section 144,..."

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