Penalty or Interest causes by Late Filing of Income Tax Return - Asstt. Year 2016-17

We all are well known the importance of Income Tax Filing.  Though this some tax payee neglect to file income tax return in due date.  Therefore, all the Tax Return Filers i.e. Tax Consultant, Business Men and special Salaried Employee (Taxpayer) who are filed non-audit and non-corporate Assessee's Income Tax Return by extended due date  i.e. 05th August, 2016 for Asstt. Year 2016-17. The details about Late filing and due date of Income Tax Return are as under:

Due date of filing of income tax return for Assessment Year 2016-17 :

• The due-date for filing of returns for non-audit & non-corporate assessee’s is 31st July of the assessment year 2016-17 which extended to 05th August, 2016.
• In case of an assessee, being a partner of a firm liable to audit u/s. 44AB, the applicable due-date shall be 30th September of the assessment year (The said limits are as per the provisions of section 139(1) of the Act).
• In the case of an assessee liable to submit a report u/s. 92E (Transfer Pricing Report) of the Act, the applicable due-date is 30th November of the assessment year.

Income Heads covered under due date 31st July, 2015

• Salary, Pension,
• Income from other source like interest income,
• Income from capital gain, 
• Income from house property and 
• Income from person owning small business and not liable to get their accounts audited are covered.

Major Effects of Non Filing of Income Tax Return by Due Date for Fin.Year 2013-14, Asstt. Year 2014-15 and onwards ?

• Losses can not be carry forward.
• Interest u/s. 234A will be charges @ 1% PM applicable.
• Income Tax Return e-Filing is Mandatory, if Annual Taxable Income is not less than 5 Lakhs.
• Income Tax Return can not be revised at any cost if filied not in time.

What happen next when Taxpayee not file Income Tax Return in Due Date ?

• There is no any penalty on late filing of Income Tax Return.

What says Income Tax section 271F regarding late filing of 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

so this section says end of relevant assessment year, for previous year 2013-14, assessment year is 2014-15 and it will ends on 31.03.2015 and onwards, means there is no penalty for late filing of income tax return up to 31.03.2015 and onward and after that assessing officer(AO) can impose a penalty of Rs. 5000, and that is also his (AO) power which he may or may not exercise after giving due hearing to the assessee.

Posted in: No Penalty,Penalty