Penalty for Late Filing or Non Filing of Income Tax Return

The last date to file income tax return every year is 31st July or 31st September. You must file your income tax return within due date. Now the questions is if you are not filing your income tax return within due date how much penalty or interest you have to pay. Here we will discuss about the penalty for late filing or non filing of income tax return. We will also update with latest amendments in budget.

Penalty for Late Filing of Income Tax Return w.e.f 1-4-2018 (New Law)

A new section 234F has introduced in the Income Tax Act which say that there is penalty of Rs.10,000 for late filing of income tax return. The fee will be levied as follows:

  • A fee of Rs.5000 in case returns not filed after the due date but before the December 31 of the relevant assessment year or
  • Rs. 10,000 in case it is filed after 31st December of the relevant Assessment Year.

But you need not to worry as it is applicable from 1st April 2018. It means it is not applicable for A.Y. 2017-18 (F.Y.2016-17) and before.

However, penalty will be Rs. 1,000 for those with income upto Rs. 5 Lakhs.

Old Law

Now, assessing officer has discretionary power to levy penalty of Rs.5000 for late filing of income tax return. After inserting the section 234F this section will not be applicable from Assessment year 2018-19 and thereafter. It is only applicable for Assessment Year 2017-18 and its before.

Due Dates to File Income Tax Return

AssesseeDue Dates
Companies30th September
All Other Assessees (Salaried and others)31st July
  • Where the last date for filing income tax return is a day on which the office is closed, the assessee can file the income tax return on the next day on which the office is opened and in such cases the return will be considered to have been filed within the specified time limit.
  • No extension of time for filing income tax return is available. However a return may be filed late with penal interest and penalty up to 31st March. It is called belated return.

Belated Return With Example 

W.e.F A.Y. 2017-18 a belated return may be filed up to the end of the relevant assessment year or before the completion of assessment, whichever is earlier. Thus, return for A.Y. 2017-18, if not filed by the due date may be filed up to 31-03-2018.

A late return attracts interest and late fee.

Example:

Mr A could not file his income tax return for A.Y. 2017-18 by the due date i.e 31-07-2017. Now he can file his income tax return up to the end of the assessment year i.e upto 31-03-2018.

Mr A will now pay penal interest on tax if any due @ 1% of every month.

But Mr A will not pay any penalty fee as income tax return is for A.Y. 2017-18.

But if Mr A will file income tax return for A.Y. 2018-19 after due date then he will pay penalty as follows:

  • Rs. 5000 (if filed before 31st Dec 2018)
  • Rs.10000 (if filed before 31st March 2019 but after 31st December 2018
  • Rs.1000 (if Mr A has income is up to Rs.5 Lakh)

Conclusion

As you know the consequences for not filing or late filing of income tax return are very bad. You must file your income tax return on time. We will assist you if you need our help to file income tax return. But you should file income tax return on time as law is going to strict every day.

Related Information

2 thoughts on “Penalty for Late Filing or Non Filing of Income Tax Return

  1. In case the Auditor not cooperating with the assessee and not filing the return in time, can assessee file is return independently,here one question is rise that the Auditor upload the return through his Email previously and registered his cell number. The assessee not known Auditor Email and password. In this circumstances can the assessee registered freshly again? through for get password, can he provide his new Email and create new password.How it created?

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