Taxpayers who won’t file their Income Tax Returns (ITRs) on time will be slapped with a penalty of upto Rs 10,000 but from the 2018-19 Assessment Year (AY)."In order to ensure that return is filed within due date, it is proposed to insert a new section 234F in the Act (I-T Act) to provide that a fee for delay in furnishing of return shall be levied for assessment year 2018-19 and onwards in a case where the return is not filed within the due dates specified for filing of return under sub-section (1) of section 139," the memorandum for the Finance Bill 2017 said.
There were two levels of penalties that were specified in this case: "A fee of five thousand rupees shall be payable, if the return is furnished after the due date but on or before December 31 of the assessment year and a fee of ten thousand rupees shall be payable in any other case." However, for small taxpayers or where where the total income does not exceed Rs five lakh, it is "proposed that the fee amount shall not exceed one thousand rupees."
As per the memorandum, the decision was being taken "in view of the non-intrusive information-driven approach for improving tax compliance and effective utilisation of information in tax administration it is important that the returns are filed within the due dates."
It also stated that the "reduced time limits proposed for making of assessment" of I-T cases, as proposed in the latest