What is the penalty for late filing of income tax return?
How much penalty one has to pay if income tax return is not filed before due date or before end of allowed period?
From when the penalty provisions are applicable?
In his budget speech finance minister in finance bill 2017 introduced the penalty provisions for non filing of ITR on time.
“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,” the memorandum for the Finance Bill 2017 said.
It specified two levels of penalty in this regard: “A fee of Rs5,000 shall be payable, if the return is furnished after the due date but on or before December 31 of the assessment year and a fee of Rs10,000 shall be payable in any other case.”
However if total income is below 5 lakhs then penalty amount shall not exceed 1,000.
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