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Belated return

ranjeet (article) (33 Points)

11 August 2012

one of our client not filed return of ay-2011-12,can he file return now with nil tax due on him and claim for refund of rs.4500 which employer has done TDS u/s 192 in the Fy 2010-11,will AO impose penalty u/s 271F on him. plz advise

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6 Replies

Mohit Chadha (CA) (37 Points)
Replied 11 August 2012

yes the assesee can file the return upto 31.03.2012 and can claim the refund

no penalty will be levid as their is no tax liablity

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S B Mishra (Article Assistant) (40 Points)
Replied 11 August 2012

Text of Penalty section 271F regarding Belated return:-

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.

here nothing is specified that penalty should impose only when tax will be payable (due)...but the language say AO may direct for penalty......

In your case Refund of Rs 4,500.

If AO impose penalty then this 4500+ intrest may be Rs 4,700 (Aprox) till that time. So max loss of Rs 300. If not than refund of Rs 4,700. So no major risk to file belated return.

If you not file the same, they may call to file return u/s 142 than all the section will applicable.

so it is advisable to file the return...

ajax (none) (25 Points)
Replied 12 August 2012

1. I have not filed return for FY 09-10. My first question is whether I can and if yes, should I file belated return now?

2. In that FY (09-10) I changed employers and thus both employers took standard deduction into consideration while deducting TDS. Same is reflected in form 16s. As a result I owe substantial amount of tax with penalty as per my calculations. My second questions, is there a way to legally reduce the outstanding tax payble?

Requesting detailed reply.

ranjeet (article) (33 Points)
Replied 13 August 2012

Originally posted by : S B Mishra

Text of Penalty section 271F regarding Belated return:-

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.

here nothing is specified that penalty should impose only when tax will be payable (due)...but the language say AO may direct for penalty......

In your case Refund of Rs 4,500.

If AO impose penalty then this 4500+ intrest may be Rs 4,700 (Aprox) till that time. So max loss of Rs 300. If not than refund of Rs 4,700. So no major risk to file belated return.

If you not file the same, they may call to file return u/s 142 than all the section will applicable.

so it is advisable to file the return...

" Law says that AO may impose penalty upto rs 5000 on filing of belated returns"

plz reply

S B Mishra (Article Assistant) (40 Points)
Replied 13 August 2012

Originally posted by : ranjeet
	Dear please see the text of bear act that ""Assessing Officer may direct that such person shall pay, by way of penalty, a sum of five thousand rupees."" Originally posted by : S B Mishra Text of Penalty section 271F regarding Belated return:- 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. here nothing is specified that penalty should impose only when tax will be payable (due)...but the language say AO may direct for penalty...... In your case Refund of Rs 4,500. If AO impose penalty then this 4500+ intrest may be Rs 4,700 (Aprox) till that time. So max loss of Rs 300. If not than refund of Rs 4,700. So no major risk to file belated return. If you not file the same, they may call to file return u/s 142 than all the section will applicable. so it is advisable to file the return... " Law says that AO may impose penalty upto rs 5000 on filing of belated returns" plz reply

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S B Mishra (Article Assistant) (40 Points)
Replied 13 August 2012

Originally posted by : ajax
	1. I have not filed return for FY 09-10. My first question is whether I can and if yes, should I file belated return now? 2. In that FY (09-10) I changed employers and thus both employers took standard deduction into consideration while deducting TDS. Same is reflected in form 16s. As a result I owe substantial amount of tax with penalty as per my calculations. My second questions, is there a way to legally reduce the outstanding tax payble? Requesting detailed reply.

1) As per section 139(4) assessee can file a belated return within 2 years from the end of the Previous year. You Have not filed for F/y 09-10.Means time limit to file return was 31-March-12.So now you can not file your return as belated also. Return can file now only against by Department Notice.

2) As you said that due to change of your employer you got benifit of Minimum taxble limit from both which was taxable. Dear there is no any legal way to reduce the same.But you may produce your document to any Income Tax Professional he may chek the exact situation.But it will required only when you got the notice to file your return fore that p/y.