I-T Dept proposes up to Rs10,000 fine for late filing of ITR
10 April 2018
The Income Tax Department has set 31 July as the deadline for filing income tax returns for financial year 2017-18 (assessment year 2018-19), beyond which individual taxpayers will have to pay a penalty of Rs10,000.
With the new financial year kicking in, taxpayers, both individual and other categories, will have to file Income Tax Return (ITR) for the financial year 2017-18 (Assessment Year 2018-19).
The ITR this year is applicable for income earned between 1 April 2017 and 31 March 2018.
As per the Income Tax Rule, with effect from assessment year 2018-19, if an assessee fails to furnish return of income within due date as prescribed under section 139(1), then as per section 234F, he will be required to pay fee of Rs5,000 if return is furnished on or before 31 December of assessment year and Rs10,000 in any other case.
However, the new rule says that if total income of the person does not exceed Rs5 lakh then fee payable shall be Rs1,000.
"In order to ensure that return is filed within due date, it is proposed to insert a new section 234F in the Act (I-T Act) to provide that a fee for delay in furnishing of return shall be levied for assessment year 2018-19 and onwards in a case where the return is not filed within the due dates specified for filing of return under sub-section (1) of section 139," says the memorandum for the Finance Bill 2017.
For individual taxpayers, the due date of filing income tax return for FY 2017-18 (AY 2018-19) is on 31 July 2018.
For businesses requiring audit, the due date of filing income tax return for FY 2017-18 (AY 2018-19) is on 30 September, 2018.
Meanwhile, Central Board of Direct Taxes last week notified the new Income Tax Return (ITRs) forms for the assessment year 2018-19.
The policy-making body of the tax department said some fields have been "rationalised" in the latest forms and that there is no change in the manner of filing of the ITRs as compared to last year.
All the seven ITRs are to be filed electronically except for some category of taxpayers.