Penalty on non submission of ITR for FY 2020-21.

ITR 274 views 12 replies

Rahul

54 Points Joined August 2019

Hi All,

My friend's income is low and his total tax for FY 2020-21 after calculation came as 0 Rs. So, he doesn't have to pay any taxes. He didn't submit ITR for that FY. He had submitted for FY 2019-20 though(no tax paid for that year as well). I heard that there is some penalty for people who didn't submit their ITR by 31 Dec 2021.

Does this penalty applies to my friend as well?
If yes, how much is the penalty? Is there any way that he doesn't have to pay it since his tax is 0 Rs in first place.
Does the penalty increases with further delay in submission of ITR?

Thanks in advance!

Replies (12)

Eswar Reddy S

CFO- at NHTF

58280 Points Joined August 2012

Late Fees under section 234F is not applicable.

Even section 234A To 234C interests also not applicable.

You may skip the ITR Filing since the income is below tax exemption limit

CA. Abhilash Krishnan P

Chartered Accountant

533 Points Joined June 2008

As eswar said there's no penalty for income below 2,50000 and it is optional to submit ITR..no need to worry

sabyasachi mukherjee

28001 Points Joined May 2017

The querist has mentioned income as 0

Eswar Reddy S

CFO- at NHTF

58280 Points Joined August 2012

Late Fees under section 234F is not applicable.

Even section 234A To 234C interests also not applicable.

You may skip the ITR Filing since the income is below tax exemption limit

Answer is already given considering major aspects given..

@ Sabyasachi Mukherjee

In what way , your answer resolve above query

Rahul

54 Points Joined August 2019

Hi Eshwar,

Thanks for your reply!

My friend's total income is Rs 286387
It's above the exemption limit of 250000. However, tax calculation, payable is Rs 0 after calculation.
Does any penalty applies if total income is above basic exemption limit?

Rahul

54 Points Joined August 2019

Thanks Abhilash for your reply!

Does any penalty applies if total income is above basic exemption limit?

CA Puja Sharma

Chartered Accountant

5010 Points Joined March 2020

If the Gross Total Income is above the basic exemption limit of Rs. 2,50,000 then you are liable to file your ITR.

In the above case you have mentioned Total Income of Rs. 2.86 LAcs which is above the threshold limit of Rs. 2,50,000

Penalty: 50% of the total tax payable on the income for which no return was furnished. However, in your case, that will come as nil

Further, there is a prosecution provision also applicable in some cases for non filing of IT return,

Samantha J

1236 Points Joined March 2019

These days issue of notice is rampant .To avoid it always file ITR if you have filed it even once earlier and even if currently income is less than basic exemption limit.

Eswar Reddy S

CFO- at NHTF

58280 Points Joined August 2012

ITR Filing has its own advantages, if it's not a compliance burden then you may go for ITR Filing.Else you can skip it since income is below BEL

debora M

BUSINESS DEVELOPMENT MANAGER

1697 Points Joined February 2019

The Income Tax department could charge a penalty of up to 50% under Section 270 of the Income Tax Act of 1961. Apart from the 50% fine, taxpayers will be required to pay interest on the amount for the number of days till the date of filing ITR.

debora M

BUSINESS DEVELOPMENT MANAGER

1697 Points Joined February 2019

Under the Income-tax Law, there are four major assessments given below: Assessment under section 143(1), i.e., Summary assessment without calling the assessee. Assessment under section 143(3), i.e., Scrutiny assessment. Assessment under section 144, i.e., Best judgment assessment.