Penalty under section 271f

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 December 2013 whether it is mandatory to impose penalty of Rs.5,000/- in case income exceeding maximum amount not chargeble to tax when return is filled after the end of A.Y.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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29 December 2013 The penalty is for non filing of return. If in the previous year your income was taxable and if you have not filed the return for the current year then this penalty can be attracted it is a different issue whether it is disposable or not for return below taxable limit

Nikhil Kaushik

Nikhil Kaushik (Expert)
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29 December 2013 Dear Vivek,

271F gets invoked where you dont file return by the end of the assessment year. So for eg for AY 2013-14, 271F is applicable only where return is not filed till 31 March 2014.

Assuming that you dont file till 31 March 2014, it shall be at the option of the AO to levy 271F penalty. But it is optional and not mandatory. Even if the AO proposes to levy such penalty, you shall be given due opportunity to present your reasons for the delay in filing and in case you are able to justify your case, penalty may not be levied.

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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29 December 2013 Penalty u/s 271F is at the discretion of AO. He may or may not impose the penalty after giving assessee due opportunity to be heard off. Rs 5000 is maximum penalty.

Querist : Anonymous

Querist : Anonymous (Querist)

04 January 2014 thanks to all of u...