For income lower than Rs 5 lakh, filing Income Tax returns after July will attract a fine of Rs. 1000, while for revenue above Rs. 5 lakh it will be Rs. 5000, if it is filed after the due date but on or before December 31 of the assessment year.
The Budget has proposed impressive a fine for not filing income tax returns within the due date. For income lower than Rs.5 lakh, filing returns after July will attract a fine of Rs.1000, while for pay above Rs 5 lakh it will be Rs 5000, if it is filed after the due date but on or before December 31 of the assessment year. It has also wished for a fee of Rs 10,000 in any other case.
Since it is a fee, it has to be remunerated while filing tax revenues along with any tax on any income and interest. “It is strategic to make momentous amendment in Section 140A to include that incase of delay in supplying of return of income, along with the tax and interest payable, fee for delay in supplying of return of revenue will also be payable,” the Finance Bill 2017 underscores.
At a post-Budget event organised by the Institute of Chartered Accountants of India, Hasmukh Adhia, income secretary said that those who have a revenue of R5 lakh and above and file returns after July but till December will face a fine of R5, 000. “This fine will be raised to R10, 000 if the return is occupied after December,” he said.
Under the Section 139(5) of the Income Tax Act, an assessment can file revised return within two years from the end of the related fiscal year or before the completion of assessment by tax authorities, whichever is earlier. The Finance Bill recommends reducing the time limit for filing such revised return to one year from the end of the relevant fiscal year or before the completion of the assessment by tax establishments, whichever is earlier. This alteration shall be effective from the fiscal year 2017-18.
A revised return can be filed if the assessee has filed the return within the due date. For filing the revised return, one has to enter the acknowledgement number and the date of filing of the original return in the revised form.
The Budget has also planned to reduce the time limit for completion of assessment under Section 153 of the I-T Act. In the assessment year 2018-19, it will be 18 months from the end of the assessment year. From the assessment year 2019-20, it will be 12 months from the end of the assessment year. It has also reduced the time limit for completion of re-assessment. In respect of notifications served under Section 148 of the I-T Act on or after April 1, 2019, the time limit for completion of assessment or re-assessment it will be 12 months from the end of the financial year in which the notification is assisted.
Interest on refund
Under Section 244(A) of the I-T Act, an assessee is entitled to receive interest on reimbursement because of excess payment of advance tax, tax deducted or collected at source. The assessed will, in addition to the reimbursement amount, will receive simple interest on such refund at the rate of interest is 1.5% for every month or part of the month from the date on which claim for refund is made in the returns or in case of an order approved in appeal, from the date on which the tax is paid to the date on which refund is granted.