Mysuru: With the amendment to Income Tax Act, any person who receives any income by way of Salary, Pension, Interest, Profession fee, etc., and who have NOT filed their Income Tax (IT) return for the FY 2015-16 (AY 2016-17) and FY 2016-17 (AY 2017-18) shall file before Mar. 31 which is the last date. After last date, IT return for earlier period cannot be filed.
Those who had income that was less than the threshold limit for income taxes to apply, but deposited a considerable amount of cash in bank during the demonetisation period shall also file a tax return.
If the proper Income Tax return is NOT filed, a penalty and interest may be levied under various Sections on tax due as noticed by the Income Tax Department.
From FY 2017-18 (AY 2018-19), a fixed amount of penalty will be charged on belated tax returns if not filed on or before due date. It is prescribed a late fee of Rs.5,000 if the return is filed after due date and up to Dec. 31 and Rs.10,000 (from Jan.1) up to Mar. 31 of the AY. If the total taxable income of a person doesn’t exceed Rs.5 lakh, late fee shall not exceed Rs.1,000.
Wherever there is any doubt, reference may be made to the provisions of the Income Tax Act, 1961, the Income Tax Rules, 1962, relevant Finance Act and/or circulars and/or notifications, according to N.D. Shreenivaas of Bhavani Associates.
This post was published on March 23, 2018 6:16 pm