Hello and welcome to Part 23 of the Income Tax education series brought to you by H&R Block, the global leader in filing Income Tax Returns.
Today we will understand about the fines and penalties If you fail to furnish your return within the due date.
In case you have tax payable on your income at the end of the Financial Year and you have not furnished the return within the due datethen,yes, you will have to pay interest on tax due. The due date to file a return of income for a Financial Year is 31st July following the end of the Financial Year. E.g. for FY ended 31.03.2015 the due date for filing ITR is 31st July 2015. In case you have tax amounting to Rs. 2,000 due to be paid as on 31.03.2015 then you will be charged with interest @ 1% per month of delay on amount due.A belated return can also be filed within a period of one year from the end of the Assessment Year or before completion of the assessment, whichever is earlier. Return filed after the prescribed due date i.e. 31st March of the relevant Assessment Year is called as a belated return. A belated return also attracts interest and penalty. If the return is not filed up to the end of the Assessment Year, which is 31st March of the relevant Assessment Year, an interest of 1% on tax due and a penalty of Rs. 5,000 may also be levied under section 271F, if the assessing officer decides so.
Example: In case of income earned during FY 2014-15, the belated return can be filed up to 31st March, 2017. However, if return is filed after 31st March, 2015, penalty under section 271F of up to Rs. 5,000 can be levied.
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