Section 271f

This query is : Resolved

Vivek (Querist)
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18 September 2012 Dear Sir,
If an individual assessee whose gross receipts in AY 2011-12 are 11 lacs and net profit u/s 44ad coming to 1 lac.

Whether the penalty u/s 271f of Rs. 5000/- will attract if he files his return for AY 2011-12 now.

Please advise me.

Amol S Joglekar

Amol S Joglekar (Expert)
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18 September 2012 Normally the income tax department is NOT harsh enough to charge penalty in such cases. So you can go ahead and file the return for the assessment year 2011-12

Vivek

Vivek (Querist)
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18 September 2012 As I have read about this section, this is applicable when, where assessee income is above exemption limit.
Am I right?

Amol S Joglekar

Amol S Joglekar (Expert)
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18 September 2012 271F. If a person who is required to furnish a return of his income, as required under sub-section (1) of section 139 or by the provisos to that sub-section, fails to furnish such return before the end of the relevant assessment year, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of five thousand rupees

Vivek

Vivek (Querist)
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18 September 2012 In the above case, assessee's income is less than exemption limit so he is not reqired to file return u/s 139 and its sub sections. Hence as per the wording of section 271f, penalty can not be lavied on the above case.

Amol S Joglekar

Amol S Joglekar (Expert)
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18 September 2012 you got it right.