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Penalties and interest for late filing

Hunny Arora (Articleship) (101 Points)

03 October 2014

What is the Penalty and Interest for late filing of Income tax return in Case of Individual and Companies Both ??

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5 Replies

Ajay (CA Job) (512 Points)
Replied 03 October 2014

Dear Hunny

Filing of belated return u/s 139(4) will entail the follwoing:

1. Interest u/s 234A

2. Penalty u/s 271F of Rs.5000 MAY be imposed if belated return submitted after the end of the aseessment year.

3. Certain (not all) losses cannot be carried forward.

4. Certain Deduction like 10A, 80-IA, 80-IAB etc. will not be allowed (though CBDT may condone the delay using power u/s 119(2))

Regards

Ajay

P.S. At the risk of sounding preachy, I suggest that you don't use such forums for easy questions that can be referred from books or over the internet otherwise, especially since you are doing your articleship as said in your status. By referring such simple things yourself, you will have a lots of additional benefits like you will incidentally learn much more than what you intended to refer for and also, you will slowly get a hold of things as to where exaclty you will get the answer to your queries even later when you start a practice by yourself. I myself is not practicing, so I have no right to be preachy but please take this in a good sense. I am not judging, it could be that you were in a hurry or something. All the best anyway. :)

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Jaikishan (CA) (168 Points)
Replied 03 October 2014

271F. Penalty for failure to furnish return of income.- 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.