Penalty on Late Filling of Income Tax Return: Consequences of submission of return after due date

What will be penalty on Late Filling of Income Tax Return or what are consequences of submission of return after due date and How to overcome the penalty for late filing of income tax return. If a return is submitted after the due date, the following consequences will be applicable;

  1. The assessee will be liable for penal interest under section 234 A.
  2. A penalty of Rs 5,000 may be imposed under section 271 F if belated return is submitted after the end of the assessment year.
  3. If the return of loss is submitted after the due date, a few losses cannot be carried forward.
  4. If the return is submitted belated, deductions allowable under certain sections will not be available.

But Assessee can apply to CBDT/Commissioner under section 119 for condonation of delay in filing income tax return or allowing any claim for deduction from income. so CBDT  may, if it considers it desirable or expedient so to do for avoiding genuine hardship in any case or class of cases, by general or special order, authorise any income-tax authority, not being a Commissioner (Appeals) to admit an application or claim for any exemption, deduction, refund or any other relief under this Act after the expiry of the period specified by or under this Act for making such application or claim and deal with the same on merits in accordance with law. subject to the following conditions, namely:—

 (i)  the default in complying with such requirement was due to circumstances beyond the control of the assessee; and

(ii)  the assessee has complied with such requirement before the completion of assessment in relation to the previous year in which such deduction is claimed

Reference: Section 234A of the Income Tax Act, 1961

Interest for defaults in furnishing return of income

(1) Where the return of income for any assessment year under sub-section (1) or sub-section (4) of section 139, or in response to a notice under sub-section (1) of section 142, is furnished after the due date, or is not furnished, the assessee shall be liable to pay simple interest at the rate of [one] per cent for every month or part of a month comprised in the period commencing on the date immediately following the due date, and,—

(a)  where the return is furnished after the due date, ending on the date of furnishing of the return; or

(b)  where no return has been furnished, ending on the date of completion of the assessment under section 144,

on the amount of the tax on the total income as determined under sub-section (1) of section 143, and where a regular assessment is made, on the amount of the tax on the total income determined under regular assessment, as reduced by the amount of,—

 (i)  advance tax, if any, paid;

(ii)  any tax deducted or collected at source;

(iii)  any relief of tax allowed under section 90 on account of tax paid in a country outside India;

(iv)  any relief of tax allowed under section 90A on account of tax paid in a specified territory outside India referred to in that section;

(v)  any deduction, from the Indian income-tax payable, allowed under section 91, on account of tax paid in a country outside India; and

(vi)  any tax credit allowed to be set off in accordance with the provisions of section 115JAA or section 115JD

Explanation 1.—In this section, “due date” means the date specified in sub-section (1) of section 139 as applicable in the case of the assessee.

Explanation 2.—In this sub-section, “tax on the total income as determined under sub-section (1) of section 143” shall not include the additional income-tax, if any, payable under section 143.

Explanation 3.—Where, in relation to an assessment year, an assessment is made for the first time under section 147 or section 153A, the assessment so made shall be regarded as a regular assessment for the purposes of this section.

Explanation 4.

(2) The interest payable under sub-section (1) shall be reduced by the interest, if any, paid under section 140A towards the interest chargeable under this section.

(3) Where the return of income for any assessment year, required by a notice under section 148 or section 153A issued after the determination of income under sub-section (1) of section 143 or after the completion of an assessment under sub-section (3) of section 143 or section 144 or section 147, is furnished after the expiry of the time allowed under such notice, or is not furnished, the assessee shall be liable to pay simple interest at the rate of [one] per cent for every month or part of a month comprised in the period commencing on the day immediately following the expiry of the time allowed as aforesaid, and,—

(a)  where the return is furnished after the expiry of the time aforesaid, ending on the date of furnishing the return; or

(b)  where no return has been furnished, ending on the date of completion of the reassessment or recomputation under section 147 [or reassessment under section 153A],

on the amount by which the tax on the total income determined on the basis of such reassessment or recomputation exceeds the tax on the total income determined under sub-section (1) of section 143 or on the basis of the earlier assessment aforesaid.

Explanation:

(4) Where as a result of an order under section 154 or section 155 or section 250 or section 254 or section 260 or section 262 or section 263 or section 264 or an order of the Settlement Commission under sub-section (4) of section 245D, the amount of tax on which interest was payable under sub-section (1) or sub-section (3) of this section has been increased or reduced, as the case may be, the interest shall be increased or reduced accordingly, and—

 (i)  in a case where the interest is increased, the Assessing Officer shall serve on the assessee a notice of demand in the prescribed form specifying the sum payable, and such notice of demand shall be deemed to be a notice under section 156 and the provisions of this Act shall apply accordingly;

(ii)  in a case where the interest is reduced, the excess interest paid, if any, shall be refunded.

(5) The provisions of this section shall apply in respect of assessments for the assessment year commencing on the 1st day of April, 1989 and subsequent assessment years.

Reference: Section 271F of the Income Tax Act, 1961

Section 271F: Penalty for failure to furnish return of income

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.

3 thoughts to “Penalty on Late Filling of Income Tax Return: Consequences of submission of return after due date”

  1. My income for year 2011-12 was 3,20,000 and i filed return online late on 31 july 2013.
    is there any penalty for belated e filing ?

  2. I was not able to file my return last year 12-13 because my daughter was hospitalised. But I have a refund of around 12000/- as per my TDS details. I have filed the return this year. will there be any panelty and will my refund be provided.

Leave a Reply

Your email address will not be published. Required fields are marked *