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IT RETURN PENALTY

CA SUDHIR HALAKHANDI (PRACTICING CHARTERED ACCOUNTANT) (13196 Points)

03 January 2009

Every year on 31^st. July an advertisement is appeared in most of the News papers for Income tax assesses to file their IT returns otherwise they will be penalized by Rs. 5000.00 under section 271F though the penalty of Rs.5000.00 is applicable if the return is not filed up to 31^st. March.

Is this practice of advertising about a non-existing penalty is justified?

- CA SUDHIR HALAKHADI

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2 Replies

Jagdish Bhalia (Practicing CA) (453 Points)
Replied 24 January 2009

Penalty u/s 271(F) may be levied by the ITO if ITR filed after 31st March. If the ITR files after 31st July but before 31st March then ITR will be treated as belated return u/s 139(4) of the I T Act, 1961 and Assessee have to pay interest on tax u/s 234(A). Belated return can not be revised and loss can not be brought forward.