Income tax return penalties: What defaulters have to pay - 10 points
There are number of penalties on various cases of Income Tax defaults. Under the Income-tax Act, penalties are levied for various defaults committed by the taxpayer. Some of the penalties are mandatory and a few are at the discretion of the tax authorities. Here, you can gain knowledge about the provisions relating to various penalties leviable under the Income-tax Act.
1. Penalty for default in making payment of Self Assessment Tax
Rs. 5000 if return is furnished on or before 31 December of assessment year and Rs. 10,000 in any other case. However, if total income of the person does not exceeds Rs. 5 lakh then fee payable shall be Rs. 1000. (Piaxabay)
2. Penalty for default in making payment of Tax
If a taxpayer is treated as an assessee in default, then he shall be liable to pay penalty of such an amount as the Assessing Officer may impose. However, penalty cannot exceed the amount of tax in arrears. (Reuters)
3. Late filing fees for delay in filing the TDS/TCS statement
Where a person fails to file the TDS/TCS return on or before the due date prescribed in this regard, then he shall be liable to pay, by way of fee, a sum of Rs. 200 for every day during which the failure continues. (Piaxabay)
4. Fee for default in furnishing return of income
If assessee failed to furnish return of income within due date as prescribed under section 139(1) then as per section 234F, he will be required to pay fee of Rs. 5000 if return is furnished on or before 31 December of assessment year and Rs. 10,000 in any other case. However, if total income of the person does not exceed Rs. 5 lakh then fee payable shall be Rs. 1000. (PTI)
5. Penalty for under-reporting and misreporting of income
Many times a taxpayer may try to reduce his tax liability by under-reporting of income. In such a case, by virtue of Section 270A, the taxpayer will be held liable for penalty. The rate of penalty shall be fifty per cent of the tax payable on under-reported income. (Piaxabay)
6. Penalty for failure to comply with notice issued
If the taxpayer fails to comply with notice issued to him under section 142(1) or section 143(2) or fails to comply with a direction issued under section 142(2A), then as per section 272A he shall be liable for a penalty of Rs. 10,000 for each failure. (Piaxabay)
7. Penalty for failure to keep, maintain, or retain books of account, documents, etc.
If the taxpayer fails to maintain books of account as per the provisions of section 44AA, then he shall be liable to pay penalty under section 271A. Penalty under section 271A is Rs. 25,000. (PTI)
8. Penalty for failure to keep and maintain information in respect of international transaction etc.
Penalty under section 271AA will be a sum equal to 2% of the value of each international transaction or specified domestic transaction entered into by the taxpayer. (Pixabay)
9. Penalty in case of income from undisclosed sources
The taxation Laws (Second Amendment) Act, 2016) empowers AO to levy penalty at the rate of 10% of the tax payable under section 115BBE. (Reuters)
10. Failure to get accounts audited or furnish a report of audit
If a taxpayer, in spite of the requirement of section 44AB, fails to get his accounts audited, penalty shall be one-half per cent of total sales, turnover or gross receipts, etc., or Rs. 1,50,000, whichever is less. (Pixabay)