02 February 2018
Dear Sir, In order to ensure that return is filed within due date, it is proposed to insert a new section 234F in the Act to provide that a fee for delay in furnishing of return shall be levied for assessment year 2018-19 and onwards in a case where the return is not filed within the due dates specified for filing of return under sub-section (1) of section 139. The proposed fee structure is as follows:— a fee of five thousand rupees 5000/- shall be payable, if the return is furnished after the due date but on or before the 31st day of December of the assessment year; a fee of ten thousand rupees 10000/- shall be payable in any other case. However, in a case where the total income does not exceed five lakh rupees, it is proposed that the fee amount shall not exceed one thousand rupees.
My question is say the due date is 31st'July 2018 and if an assessee fails to file the return within 31st July'2018 and he file return in the month of August'2018 and his total income is below Rs. 5.00 Lacs then he has to pay Rs. 1000.00 as penalty. Please say whether am I wright or wrong.
03 February 2018
Your understanding is correct, except that it's a fee and not a penalty. Inter alia, one of the main difference in fee and penalty is that fee is automatic, whereas penalty proceedings have to be specifically initiated. Therefore, in your scenario, a FEE of Rupees 1000 would be levied.
CAclubindia
