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Rebate U/s 87A & Penalty U/s 271f

04 June 2017

If we file the ROI for AY 2016-17 now and declare an income below 270000 getting a rebate of 87A as if now, then it will be treated as below taxable limit and would there be any penal liability in future of 271f of Rs. 5000/- Can the rebate be claimed in this case if so yes, then will 271f is applicable or not?

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Poltu Ghosh (Job) (1865 Points)
Replied 04 June 2017

Filing of return is mandatory if gross total income exceeds Rs 250000. It does not matter whether tax liability is there or nil and nothing to do with rebate. The provisions for filing of return and allowance of rebate are independent. Thus penalty in your case may be imposed. Also note that the government introduced the concept of rebate instead of increasing the basic exemption limit only to attract more filers and at the same time to give relief by way of rebate