The cases for which taxpayers can be penalized under this section are known as default in furnishing income. These are :
For all these failures individuals have to pay interests that are charged in three heads i.e
|Section 234A||Delay in filing of Income Tax Return|
|Section 234B||Delay in making payment of Advance Tax|
|Section 234C||Deferred payment of Advance Tax|
The delay in filing tax return comes under Section 234A. If any taxpayer will file his or her tax return late, he or she will be charged a penalty in the form of interest. The taxpayer should file the return of his or her income before 31st july of the financial year.
In the case of delay in filing Income tax return (ITR), the taxpayer has to pay interest @ 1% per month. This amount is calculated on the tax sum that is outstanding. The individual has to pay interest from the first date (after the due date) till the date on which the income tax return is filed. For this also there are two cases:
Mr. Viraj has to file his income tax return by 31 st July 2018 but delayed and filed his ITR on February for the financial year 2017-18. His outstanding tax amount is of Rs. 2.5 lakh. Mr Viraj delayed his ITR for 7 months( August, September, October, November, Dcember, January, February) ( part of a month is rounded off) and if assumed he had not claimed his tax refund, he will be liable to pay interest as a penalty.
Interest to be paid will be = 250000*1%*7 =17500
Under section 234A Mr Viraj is liable to pay Rs 17500 as penalty in the form of interest levied @ 1% for the months delayed.
In case if the taxpayer claimed a tax refund even if he or she has failed to file his income tax return on time, the interest will be charged on the net amount outstanding for him or her. This will be calculated as total outstanding tax amount minus the tax refund.
This is a form in which the taxpayer has to file all the information related to taxation. This includes all the incomes of the assessee, taxes to be paid and so on.
This is the total sum that is outstanding on the taxpayer and is to be paid by the assessee.
This interest is the amount that is penalized on the taxpayer for the delay in the filing of Income Tax Return.
This is the date of the financial year till when the Income Tax Return has to be filed by the individual. This is specified under the section 139(1) of the Act.
The individual will be penalized for not filing return on time under section 234A. So, if there is a delay in filing of your return get ready to pay extra in the form of penal interest. The interest charged for delay is 15 per month for the months you delayed filing your income tax return. The return should be filed before 31st July of the financial year you have to pay the income tax.
Yes , if you delay in filing ITR from the due date that is fixed by the Income Tax Act, you will be charged a penalty in the form of interest to be paid on the outstanding taxable amount.
Yes, an interest of 1% per month is to be paid by the defaulter of filing return of income tax on time.
The interest that is to be charged will be computed from the due date for the filing of income tax return in the financial year till the date you actually filed your income tax return. The interest that is charged on you will be 1% per month for the months you have delayed your filing.
Ans. If taxpayer missed the last date for filing ITR then Interest shall be payable @ 1% per month or part of the month.
Ans. Advance tax is paid on the following dates of a financial year:
Ans. taxpayer needs to file an Income Tax Return for claiming Income tax Refund.
Ans. Taxpayer needs to pay Interest before filing income tax return.
Complete guide covering all the basic tax related terms.So, that tax terms will not work as a road-stopper in your way!!
Comprehensive Guide containing all Information that you must know while filing of your ITR for FY 2018-19 (AY 2019-20).
Free Income Tax Calculator for Assessment Year (AY) 2018-2019 and AY 2017-2018 with new budget changes.
Calculate HRA exemption based on your salary for AY 2018-19. Make accurate calculations of HRA for employees.
Hire smartest eCA's toFile Your Income Tax Return. CA Assisted Filing of ITR. File your Income Tax Return with confidence and ease.
Tax2win is an efiling portal to prepare and efile income tax return Online. Tax2win helps individuals to file their income tax return.