Penalty u/s.271 f for belated returns

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Maulik Shah (Querist)
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24 March 2013 As per provisions of Section 139(1) of the Income Tax Act, 1961, every person
whose total income exceeds the maximum amount, which is not chargeable to
income tax, shall by the due date, file his return of income in prescribed form.
Failure to do so by the due date or before the end of relevant assessment year
will attract penalty under Section 271'F of IT Act 1961, amounting to Rs. 5000/-.

so does this mean if a person who is actually not liable to file return u/s. 139(1), files a return in refund u/s 139(4) after the end of relevant asst. year

penalty u/s.271(F) would not attract

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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24 March 2013 Those who are compulsory required to file their return of income(i.e those who have taxable income above the basic exemption limit) doesn't file their return of income before the end of such assessment year then penalty u/s271F may be levy and it would be depending on the AO. And those who haven't any taxable income and no any tax liability they can file after the end of such assessment year upto one year from the end of such assessment year and no penalty will be applicable and levy. For your clarification and confident following examples for you.

Case 1: Mr.A has total income for F.Y. 2011-12 of Rs 2,50,000. So he has to file his return of income on or before 31-3-2013 to avoid 271F penalty

Case 2: Mr. A has total income for F.Y 2011-12 of Rs 2,50,000 and he has no any self assessment tax payment liability i.e his total tax payable paid as TDS or advance tax. Then he can file he return of income upto 31-3-2014 and no penalty will be leavy because of no tax avaision or tax paid earlier and with in due date.

Case 3: Mr.A has total income for F.Y 2011-12 is Rs.1,60,000 but his gross total income is Rs.2,00,000(i.e above basic exemption limit) then he can file his return of income upto 31-3-2014 and no penalty u/s 271F will levy.

Case 4: Mr. A has total income for F.Y 2011-12 is Rs.1,50,000 but his gross total income is Rs.1,70,000(I.e below basic exemption limit) then Mr. A is not mandatory to file his return of income and if he want to file at his option he file his return of income upto 31-3-2014 and no penalty question will arise.

For case1 there is self assessment tax payment liability so if he fail to file his return of income on or before 31-3-2013 then penalty u/s 271F will impose however Assessing officer has a right to give exemption of penalty u/s 271F based on reason of fail to file with in time prescribed.
For case2 even though taxable income exceeds basic exemption limit there is no self assessment tax payment liability so 271F penlaty need not be immpose

For case3 there is no tax liability so 271F penalty need not be immose

For case4 there is no compulsory filing of return because of gross total income doesn't exceeded the basic exemption limit so no question of penalty u/s 271F.

So is you now get the idea about penalty immpose and you get confident?

For any clarification please write your doubt.

OM SAI SRI SAI JAI JAI SAI

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Maulik Shah

Maulik Shah (Querist)
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24 March 2013 Thanks for your Efforts Sir,

But still i need some clarifications on this :

supposing Mr. A has Total income of 1,10,000 for F.Y. 2011-12, which is well below the limits but some how TDS has been deducted on his income from bank by way of FDR interest

SO...

(1) Is he eligible to file return for refund after 31-03-2013, without attracting penalty u/s.271F.

(2) so clearly speaking he is late and claiming a refund of TDS, does this attract penalty u/s. 271 F

and

(3) does claiming of refund makes a person liable to file return u/s. 139(1)

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Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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24 March 2013 No penalty will be applicable u/s 271F because of there is no tax payment liability it is the case of tax refund. So penalty not applicable.

But better to file his return 31-3-2013 to claim and get refund of TDS. Because of to claim TDS and get it refund due date is 31-3-2013 if you filing it after 31-3-2013 and on or before 31-3-2014 it may be reject to give refund recently i heared one case of reject of refund due to time expired to claim TDS however in one of my another case i get the refund even i filed after the expiry of assessment year so we can't say. So better to file with in the completion of assessment year to claim and get refund.

But any case no penalty will be impose.

OM SAI SRI SAI JAI JAI SAI

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Maulik Shah

Maulik Shah (Querist)
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24 March 2013 OK.......... i GOT IT

Thanks a lot Sir for taking your time out and solving my query...

anyhow i will file the return before 31-03-2013.